ANADARKO2016 HSE and Sustainability Overview 5 Introduction Anadarko’s HSE and sustainability activities support the Company’s Core Values. The following are just a few examples

ANADARKOHealth, Safety, Environment and SustainabilityOverview 2016

ANADARKO PETROLEUM CORPORATION2

“Sustainability is integral to continuing to fulfill our corporate mission. Protecting health and the environment coupled with responsible care for our employees, contractors and communities are core to delivering consistently positive economic performance.”

FROM THE CEO

2016 HSE and Sustainability Overview 3

Anadarko Petroleum Corporation (Anadarko or the Company) is pleased to present our annual Health Safety Environment (HSE) and Sustainability Compliance Overview. This document provides a view of the efforts our employees made this year in the areas of HSE compliance and sustainability. The Company continues to make significant progress in a number of areas, highlighted by some of the achievements noted in this Executive Summary.

Anadarko’s Core Values form the foundation for all that we do and provide a clear path toward sustainability. Integrity and trust, servant leadership, open communication, people and passion and commercial focus guide employees’ daily activities and decisions. The Core Values are a key element that drives collaboration and provides opportunities for shared successes with stakeholders wherever we operate. The challenging market environment experienced the past couple of years has further bolstered our determination to continually improve and discover new ways to operate more safely, efficiently and cost-effectively.

Examples of recent Anadarko initiatives that reflect our desire to deliver shared successes are:

• Integrity and Trust – Advancing process safety throughout the Company

• Servant Leadership – Social investment, training and a strong safety culture

• People and Passion – Hand protection campaign to reduce most common injuries, employee volunteerism

• Commercial Focus – Risk identification, assessment and mitigation

• Open Communication – Mexico-U.S. Emergency Response Exercise, stakeholder engagement

Identifying, Assessing and Mitigating Risk: Anadarko’s auditing process is a key component to operational success. It provides an internal evaluation on whether teams have achieved conformance with applicable regulations and internal programs. In 2016, the Company focused on tracking and addressing repeat findings and increasing closure rates (see Audits, page 38).

Pursuing Continuous Improvement: The Company continues to work to capture and analyze data for the purpose of continuous improvement in all areas of business including safety, spills and air quality (see pages 14 & 16).

Leading the Way on Stakeholder Engagement: Over the past several years, Anadarko has become a recognized industry leader in developing stakeholder-engagement strategies uniquely tailored to the needs of specific communities (see Stakeholder Engagement, page 44).

Increasing Transparency: In 2016, the Company continued its focus and commitment toward sharing useful information through transparency in sustainability reporting (see Sustainability Reporting, page 52).

Adhering to Our Core Values

EXECUTIVE SUMMARY


• Achieving Core Values – pg 5

• Compliance Status – pg 6

• HSE Laws and Risk – pg 8

• Process Safety and Anadarko Management System – pg 12

• Health and Safety – pg 16

• Crisis and Emergency Management – pg 22

• Air, Water and Land and Wildlife – pgs 24, 26, 30

• Chemicals and Hydraulic Fracturing – pg 34

• Spills and Waste – pg 36

• Audits – pg 38

• Training – pg 40

• Internal Awards and Recognitions – pg 42

• Stakeholder Engagement and Social Investment – pg 44

• Sustainability Reporting – pg 52

• Appendices – pg 56

This overview documents the processes in place to ensure compliance, protect corporate

assets and limit liability to personnel and/or the corporation with regard to health,

safety, environment (HSE) and sustainability at Anadarko Petroleum Corporation and

its subsidiaries. Under the directive of the Corporate HSE Policy, each Executive Vice

President who reports to the Chief Executive Officer shall report to the Board of Directors

(BOD) the results of the compliance efforts within their area of responsibility.

________________________________________R. A. WalkerChairman, President and Chief Executive Officer

________________________________________David J. McBrideVice President, Health, Safety and Environment

Al Walker Chairman, President and Chief Executive Officer

Bob GwinEVP, Finance and Chief Financial Officer

Bobby Reeves EVP, General Counsel and Chief Administrative Officer

Darrell HollekEVP, Operations

Ernie LeyendeckerEVP, International and Deepwater Exploration

Mitch IngramEVP, Global LNG

This report provides a summary of the major HSE and sustainability topical areas of (report page numbers):

Introduction

INTRODUCTION


Introduction

Anadarko’s HSE and sustainability activities support the Company’s Core Values. The following are just a few examples of that relationship.

Integrity and TrustProcess safety advanced throughout Anadarko in 2016. Highlights include an updated facility-level hazards-analysis methodology in the deepwater Gulf of Mexico, advanced techniques, procedures and training in the U.S. onshore, and Fire and Loss of Primary Containment reduction measures company-wide.

Servant LeadershipEach year, hundreds of employees help build safe places to live, enhance wildlife reserves and assist elementary school children master core competencies. Their investment of time totals more than 13,000 hours during corporate-sponsored events alone with countless more being contributed to the communities in which our employees call home. These hours amount to meaningful accomplishments and engagement with stakeholders who have vested interest in our areas of operation.

People and PassionIn 2016, hands were the leading body part injured by the employee and contractor workforce. In response, an awareness campaign around hand hazards, hand safety, and hand awareness has been created to reduce high-risk hand hazards, determine solutions and share best practices.

Commercial FocusRisk identification, assessment and mitigation is integral to how we conduct daily business. In order to preserve shareholder value, risk management is a core responsibility. This document details some of the processes we use to identify, evaluate and mitigate risk.

Open CommunicationOn April 26, 2016, Anadarko hosted and participated as the operator for an all-day Mexico – U.S. (MEXUS) Table Top Emergency Response Exercise at our corporate headquarters. More than 100 participants from U.S. and Mexico government agencies, Anadarko Gulf of Mexico Incident Management Team and key contractors engaged in discussions and shared information to understand each country’s policies and procedures responding to a hypothetical offshore spill.

LIVING CORE VALUESANADARKO CULTURE


Corporate HSE PolicyHSE compliance at Anadarko is a joint effort across the Company, with shared ownership and responsibility between all the operating groups, select staff departments and the HSE department. The HSE department provides broad HSE program development worldwide and supports Senior Management in its execution of the Anadarko HSE Policy statement below. The Company achieves sustainability by living our core values of integrity and trust, servant leadership, open communication, people and passion, and commercial focus, all of which guide its activities.

Purpose To respect and protect the safety and health of the public, our employees, our contractors and the environment in all countries and communities in which we conduct our business.

Policy The policy of Anadarko with respect to the environment, health and safety is to:

• Promote a culture that allows for employee involvement in maintaining a safe work environment while recognizing that safety, health and environmental incidents are preventable

• Strive for zero injuries and incidents

• Be a recognized leader in environmental stewardship

• Promote continuous improvement in our processes, reducing risk to safety, health and the environment

• Adhere to applicable laws, regulations, Anadarko policies and procedures, and recognized standards

Additionally, everyone has the responsibility, and will be held accountable, to work safely and in an environmentally sound manner.

• Our number one priority is the safety and well-being of the public, our employees, and contractors

• Our business activities will be conducted to minimize our environmental impact

________________________________________R. A. WalkerChairman, President and Chief Executive Officer

Compliance Status

COMPLIANCE STATUS – POLICY


Anadarko’s Compliance: A Collaborative EffortAt Anadarko, HSE and sustainability compliance exemplifies the Company’s Core Value of “Commercial Focus.” The following teams within Anadarko have roles and responsibilities around HSE and sustainability compliance in execution of the Anadarko HSE Policy.

Worldwide Marketing:maximizing the value of the

Company's products – environmental footprint Stakeholder Relations:

listening, engaging, sharing knowledge and ensuring responsibilites and accountability

Operations:achieving compliance and operating a safe

and environmentally sound manner

Information Technologies:designing and supporting internal HSE

and sustainability data systems, and assuring business continuity

Government Relations:supporting in developing and implementing regulatory and agency strategies

Corporate A�airs and Law:supporting on legal, ethical and reputational mattersCorporate Communications and

Investor Relations:supporting external a�airs and

reporting, to ensure transparency

Health, Safety and Environment:supporting global program development, risk evaluation and mitigation strategies

Human Resources:providing world-class career development and training programs, including HSE and sustainability

Finance and Accounting:transparently managing asset retirement obligations and other financial HSE and

sustainability mattersTreasury and Risk:managing process to identify and monitor financial and operational risk

Working Together

Compliance Status


HSE Laws & Risk

Health, Safety and Environment (HSE) Laws Oil and natural gas upstream and midstream operations are subject to laws and regulations in every country in which we operate. Anadarko operates its global onshore and offshore operations in compliance with the applicable laws and associated regulations. In the United States, such operations are regulated by a number of key agencies and are subject to a multitude of federal, state and local laws and regulations, including by the key federal agencies listed in the table below. Examples of specific laws and regulations that Anadarko must comply with around the world are included in Appendix A.

U.S. Onshore and Offshore Federal Agencies

Bureau of Land Management (BLM)Occupational Safety and Health Administration (OSHA)

Bureau of Ocean Energy Management (BOEM) Office of Surface Mining (OSM)

Bureau of Safety and Environmental Enforcement (BSEE)

Pipeline and Hazardous Materials Safety Administration (PHMSA)

Federal Aviation Administration (FAA) U.S. Army Corp of Engineers (ACOE)

Federal Motor Carrier Safety Administration (FMCSA) U.S. Coast Guard (USCG)

Federal Railroad Administration (FRA) U.S. Environmental Protection Agency (U.S. EPA)

National Oceanic and Atmospheric Administration (NOAA)

U.S. Fish & Wildlife Service (U.S. FWS)

HSE LAWS & RISKTACKLING A COMPLEX REGULATORY ARENA

The legal requirements discussed above apply to the core business activities of the Company in the oil and natural gas field as well as to the workers at corporate offices and all other U.S. sites. There are also numerous state and local jurisdictional requirements that regulate pollution, worker safety and other similar activities. Outside the U.S., similar environmental and work-safety laws exist in various forms around the world. The Company’s HSE compliance processes are designed to comply with the laws and regulations in international countries that Anadarko enters or is an operator.


HSE Laws & Risk

Modify the mitigation strategies

Measure e�cacy of the

mitigation Mitigate the risk using

practices and technology

Assess the risk using data and

information

Report to Anadarko

Leadership

Report to Board of Directors

Identify the risk

Identifying, Assessing and Mitigating RiskRisk identification, assessment and mitigation is integral to how we conduct our daily business. In order to preserve shareholder value, risk management is a core responsibility. There are various types of risks, including financial, below ground (reserves), and above ground (health, safety, environmental and license to operate).

In the 2015 overview, the Company detailed specific areas of risk associated with key aspects of operations (drilling, completion, production, midstream and exploration). In this document, the process we use to identify and evaluate risk is detailed. The following are a few examples of how the Company’s risk process works to identify, assess and mitigate risks.

Noise Reduction

• Identify the Risk: In the DJ Basin of Colorado, some residents in the community in which the Company operates voiced concerns about the level of noise from operations. The Company identified it as a community concern through the Colorado Response Line. In addition, the state government convened stakeholders (operators, service companies, noise experts) into a technical workgroup to discuss how to best measure and mitigate noise resulting from oil and natural gas operations.

• Assess the Risk: The DJ Basin built an internal team, including individuals with specialties in operations, regulatory, HSE, communications, legal and stakeholder relations to discuss and determine how to best assess the risk around noise levels. Together, the team reviewed each proposed location of operation and evaluated for expected noise levels based on models of the equipment to be used as well as internal data collected from the Response Line. Based on the expected noise levels and proximity to stakeholders, the team chose mitigations strategies to minimize risk, which could include mitigation at the source on the equipment or full location noise mitigation.

Mitigating Risk


• Develop Mitigation Strategies: After working closely with operators (including Anadarko) and experts in the noise field, the State of Colorado determined that the state regulations did not need to be updated in 2016. Internally, we began to implement increased noise mitigation strategies based on the internal data collected and evaluated. We continue to better understand the noise impacts of our operations and evaluate the effectiveness of the mitigation strategies employed.

Water Management

• Identify the Risk: Water is integral to the production of oil and natural gas. It is used in hydraulic fracturing and returns as produced water throughout the life of a well. The Company determined in 2014 that risk around water life-cycle use and management needed greater evaluation. A Technical Water team was developed that includes representatives from each operational play, and experts in Technology, Environmental, Legal and Communications. The team worked together to develop both risk-and cost-assessment tools.

• Assess the Risk: Each operating area used the risk tools to evaluate key aspects of water management: sourcing, transporting, storing, using and disposing of water. The teams mitigate risk around water sourcing by finding non-fresh sources (i.e., flowback and brackish water). The risks around the use of water are well regulated and mitigated (i.e., wellbore integrity and spill response and management). The team identified a risk associated with the disposal of water, which varies based upon the quantity of water produced from a well and the availability of disposal wells.

• Develop Mitigation Strategies: The Technical Water team shared information, technology and lessons learned around water management practices. Each team continued to develop strategies to mitigate risks around disposal. The Marcellus team worked with third-party water-treatment companies to find alternatives to downhole disposal. The DJ Basin is working to obtain a water discharge permit and identify treatment technologies. The Delaware Basin team developed significant storage capacity for reuse of flowback. In addition, the Midstream team formed a water-management company to accept and dispose of produced water for a fee. This team is also looking at water-treatment technologies to be able to offer water for beneficial use at the surface.

Vehicle Safety

• Identify the Risk: We manage data that tracks health, safety and environmental matters. Vehicle incidents are closely tracked. Over the years, the HSE staff and Operational teams have worked together to evaluate the cause of vehicle incidents and develop practices to reduce them.

• Assess the Risk: Specifically, the Safety team works with Operations, Legal and other groups to investigate all incidents. For example, a vehicle incident could be the result of striking an animal, backing out of a parking location, distracted driving, or vehicle malfunction. The team will evaluate the data for key trends and promptly work to develop mitigating strategies. Additionally, HSE monitors industry trends to leverage learnings into action within our operating areas.

• Develop Mitigation Strategies: The development of mitigating strategies for vehicle incidents is an ongoing effort. There are numerous different strategies, including installing rovers in company vehicles that track driver performance, requiring employees to limit backing and parking for first move forward and disallowing the use of cell phones while driving. The Safety team evaluates the efficacy of the various strategies, engages with peer companies to learn best practices, and works through industry groups to continually improve federal and state safety regulations.

HSE Laws & Risk


The below chart portrays other areas of HSE and sustainability risk for the Company’s global operations.

Health, Safety, Environment and Sustainability

Risk Examples Safety EnvironmentSocial

Community

Worker Injury | Illness

Contractor Injury | Illness

Vehicle Incidents

Rig Projects | Well Control | Rig Moves

Production | Processing | Gathering Operations

Offshore – New Installation Construction

Subsea Tie-ins | Well Development

Onshore – Construction of Compressor Stations

Pipelines | Associated Facilities

Increased Regulatory | Permit Stringency | Complexity

Legacy Remediation | Environmental Reserves

Use of Third-Party Waste Disposal Facilities

Public Concern – Air | Water | Environment | Communities

Stakeholder Interest in Increased Transparency

Special Interest Groups – Leveraging Science, Law and Public Concerns to Restrict Access

Shareholder Proxy Resolutions and Queries

HSE Laws & Risk


Process Safety & AMS

PROCESS SAFETY & ANADARKO MANAGEMENT SYSTEM

Process Safety at AnadarkoAs part of its commitment to continual improvement, Anadarko created a dedicated HSE Process Safety team in 2016. This team began to develop processes, procedures, and other tools to identify, assess and mitigate risk around process safety.

Process Safety Program and ProgressIn 2016, the Process Safety team developed a succinct “purpose statement,” defining the meaning and benefits of process safety. The team is developing a Communication Strategy and materials to increase awareness across the company of the resources available for support.

The Anadarko Management System (AMS) Level 1 document is the corporate policy document describing the Company’s commitment to process safety. Following the establishment of the Level 1 policy in 2016, the team is focused on developing the subsequent Level 2 and 3 documents for regional support of the Level 1 policy, as follows:

• Level 1: a policy that defines the expectations and boundaries for the Company’s activities

• Level 2: process or program documents that describe “what happens” within the organization to accomplish the policies

• Level 3: procedures or “how-to” step-by-step instructions that implement the programs and processes

• Level 4: tools, forms or templates teams develop to fulfill the procedures

BUILDBuild according to the DESIGN

DESIGNDesign to

minimize risk

OPERATEOperate in

accordance to the DESIGN

MAINTAINMaintain to preserve the

DESIGN

Design • Build • Operate • Maintain / Keep It In The Pipe


REGIONAL HIGHLIGHT


Long-Range Ultrasonic Testing (LRUT) Pipeline Inspection ProgramThe long-range ultrasonic testing (LRUT) inspection program was introduced at Groupement Berkine in Algeria to identify and treat pipelines to prevent oil spills at the Hassi Berkine (HBNS) field. LRUT was selected as the inspection technique as it is non-intrusive with no impact on production. The technology was used to develop a risk matrix ranking system, which shifted the mode of repair from reactive to proactive.

It is a multi-year inspection campaign that prioritizes each pipeline and assesses risk based on measurements and calculations of wall thickness, fitness for service, and probability of failure. The initial efforts (2012-2016) were completed for approximately 400 kilometers of oil production pipeline. The focus of the follow-up (2016-2019) is on buried sections, road crossings and re-inspections of potential corrosion sections.

The repair methods used include clamp installation, pipe replacement and composite material wrap. The treatment program has also been enhanced by completing installation of permanent chemical injection skids (currently on 11 pipelines). This is undertaken alongside the continued use of portable chemical injection skids (currently on 34 pipelines with skids installed) for batch treatment until permanent skids are installed. Progress is being made to install a further six skids in the first quarter of 2017.


Anadarko Management System A project team comprised of members from all Integrated Asset Teams and Service Groups was formed and is charged with developing, delivering and implementing a single, consistent and standardized Anadarko Management System (AMS) program for the Company.

The AMS Level 1 policy:

• Establishes Anadarko’s commitment to Process Safety by managing operational risk

• Sets the stage for the development of subsequent documents at the integrated asset team level to support the policy

We are using existing AMS documents developed by our operating entities to the extent practicable. The Level 1 document identifies ten foundational elements, which are used to bolster efforts to assure safe and environmentally competent operations. The Level 1, 2 and 3 documents also provide a roadmap for regulatory compliance.

The objective of the AMS described in the Level 1 document is that we:

• Are committed to managing and operating worldwide assets in a manner that identifies and manages operating risk, and protects the health and safety of employees, contractors, neighboring communities, customers, partners, and the environment

• Are committed to managing and operating worldwide assets in compliance with all applicable health, safety and environmental rules, regulations, and laws

• Developed the AMS because managing operating risks and protecting people and the environment is not just good policy, it is good business

• Built the AMS on Anadarko’s Core Values, Vision, Mission, and Policy Statements and provided the framework tools and direction to meet these commitments

Benefits of a single management system include:

• Using a common nomenclature, terms, methods, and software

• Providing the ability to assess, accept, and aggregate operational risk company-wide

• Enhancing the ability to move people across areas through consistent and more standardized ways of doing business

This company-wide effort will enable us to adopt common processes, procedures and tools where consistency is necessary (or efficiencies can be achieved) across the company.

HSE Process Safety Performance MetricsIn 2016, Anadarko added additional performance metrics to its monthly HSE Performance Report, including two process safety related metrics: Loss of Primary Containment (LOPC) and Fire Events.

Data from these metrics is used for prevention of process safety incidents by tracking trends in order to analyze incidents, monitor progress and drive operational improvement. The team is working to better gather, understand, interpret and use our process safety data. Data integrity and analysis will be a key project for the Process Safety group in 2017.


Anadarko Management System (AMS)




Health and Safety Vision for AnadarkoPersonal SafetyEvery employee at Anadarko plays a significant role in creating a LiveSAFE and SafeStart (see page 19)culture that thrives with passion to create an environment where every employee goes home safely and environmental impact is minimized. Our focus on the Core Values helps assure every employee maintains a safety culture that will achieve high standards for health, safety and the environment.

Protecting HandsIn 2016, hands were the leading body part injured in our employee and contractor workforce. In an effort to reduce hand injuries, an awareness campaign that focused on hand hazards, hand safety and hand awareness was created and communicated to employees. The objective was to raise awareness and reduce high-risk hand hazards, determine solutions and share best practices.

Employee and Contractor Injury and Illness PyramidsAnadarko added Injury and Illness Pyramids to its reporting framework to monitor key leading and lagging indicators for safety incidents and culture. At the base of the safety pyramid is a strong foundation of safety concerns and unsafe behavior indicators. As one moves up the pyramid, the severity of the outcome of unsafe behaviors increases. Leading safety indicators are proactive and include preventative events where no one was injured: Near Misses and Employee Observations. Lagging safety indicators are reactive and reactionary measures that involve an injury.

Health & Safety

HEALTH & SAFETY

DRIVING CONTINUAL IMPROVEMENT

Employee and Contractor Injury and Illness Pyramid

Poster for Awareness Campaign

Fatality

Days AwayRestricted

or Transferred(DART)

Medical TreatmentBeyond First Aid

First Aid / No Treatment

Near Miss

Observation Count


Health & Safety

Contractor Management and EngagementIn 2016, Anadarko enhanced its Contractor Assessment Program in order to improve functionality and understanding of the internal processes associated with contractor HSE engagement. This enhancement included revising the program from our original Contractor Assessment format into separate programs, Contractor Onboarding and Contractor Engagement. We also made enhancements to the Contractor Management Tool. These allow for improved data accessibility, increased efficiency, and a more complete HSE review process. Also during the 2016 year, Contractor Engagement completed a U.S. Onshore Contractor HSE Expectations Manual. The purpose of this manual is to inform contractors of the Company’s minimum expectations related to worker safety and environmental protection. In 2017, we will incorporate Gulf of Mexico and International Operations into a single contractor program.

Total Recordable Incident Rate

2008 2009 2010 2011 2012 2013 2014 2015 2016

Total Recordable Incident Rate*

* Total Recordable Incident Rate (TRIR) is a measure of the rate of recordable workplace injuires, normalized per 100 worker per year.** American Exploration and Production Council (AXPC) member-company average

0.36 APCEmployee

0.50 AXPC**


Health & Safety

Five Year Vehicle Incidents*

Anadarko’s Vehicle Safety ProgramVehicle safety is an important part of our safety program. Anadarko sets forth the guidelines and expectations for operating company vehicles in its Vehicle Safety Policy, which states that all company vehicles will be operated in a safe manner. Vehicle incidents is a closely tracked metric. The HSE staff and Operational teams work together to evaluate the cause of all vehicle incidents and develop practices to reduce such incidents. The Safety team works with Operations, Legal and other groups to investigate any incident. The team evaluates the data for key trends and promptly works to develop mitigating strategies. There are numerous examples of these mitigating strategies, including providing driver training, installing rovers in company vehicles that tracks driver performance, requiring employees to limit backing and parking for first move forward, disallowing the use of cell phones while driving. The Safety team evaluates the efficacy of the various strategies, engages with peer companies to learn best practices, and works through industry groups to strengthen federal and state safety regulations.

0

10

20

30

40

50

60

2.5

3.0

3.5

4.0

2012 2013 2014 2015 2016

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Inci

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Vehicle Incidents (5 Year)

Vehicle Rate Millions of Miles DrivenVehicle Incident Rate Millions of Miles DrivenM

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Health & Safety

REGIONAL HIGHLIGHT

Center for Offshore Safety (COS) Safety Leadership AwardIn 2016, Anadarko received the Center for Offshore Safety (COS) Safety Leadership Award for the Gulf of Mexico team’s relationship-based Integral Safety Culture program called LiveSAFE. Our LiveSAFE training team has trained more than 10,000 employees, contractors, and third-party service providers since its inception in 2008, with more than 85 percent of those being non-employees. Through these LiveSAFE orientations and numerous other industry presentations, we are helping to positively influence the safety culture of the entire Gulf of Mexico industry. A strong safety culture is essential to strong safety performance, and works hand-in-hand with an effective management system to improve safety and environmental performance.


Health LiveSAFE Branches Out to Healthy LivingAs an extension of the LiveSAFE safety culture, our Gulf of Mexico team created a new campaign called LiveFIT. The program promotes making healthy living a priority among our employees at Anadarko. The campaign has already seen great results since it was originally rolled out to the offshore staff. The current participation rate is above 60 percent and growing, in part due to the tools available to those taking on the LiveFIT challenge.

Anadarko offers on-site exercise facilities in The Woodlands and Offshore Operations. The In Body 570 body composition machine, located in The Woodlands, determines muscle mass, body fat, water content and more by using electrical impedance. This tool provides targeted details and charts progress and gives recommendations for areas of improvement and monitors a person’s changes in diet and exercise. These results can then be discussed with physicians to better support living healthy.

Nansen Spar Offshore Foreman shares his personal success story: “On Christmas Day of 2015, I got on my scale and read an unfamiliar and surprising number. That’s when I made the choice to begin my weight-loss journey. During the February Foreman’s Meeting in The Woodlands, I learned about LiveFIT. I jumped on the body analyzer opening my eyes as to how out of shape I truly was. That day, I knew I needed to take my health more seriously and stepped up my efforts tremendously. I’m now down 50 pounds and feel great. I have increased energy and better mental disposition. With the results I’ve seen using the available tools and programs associated with the LiveFIT program, I will definitely be able to remain highly motivated to reach a healthier lifestyle.”

Health & Safety


REGIONAL HIGHLIGHT

ISOS Duty of Care Awards 2016 Shortlisted OrganizationFor the first time, Anadarko participated in the International SOS (ISOS) Duty of Care Awards under the communication award category by submitting the Healthy Traveler Support System (HTSS). The HTSS includes a recently developed comprehensive website that works in conjunction with ISOS pre-trip advisories. The website provides international travelers with information and services they need to prepare for trips and manage their individual travel related health risks. There were more than 100 submissions representing 18 industries from 29 countries. The Company’s submission was selected for the shortlist of award nominees for the final round of judging, providing Anadarko recognition from the panel for efforts in health and communication.

Global Health IssuesWe strive to manage global health concerns such as pandemic influenza, tuberculosis, and diseases such as malaria, zika and dengue fever. The International teams created tools, resources and reference materials to ensure global travelers are aware of their individual health status, understand the health risks they face when traveling, and have the resources to mitigate against them.

Exercise ProgramsWe have numerous programs that promote a healthy lifestyle, such as the Rally program that awards employees for participating in daily exercise regimes, healthy eating habits and wellness activities. Ergonomic assessments are offered to all employees through a face-to-face assessment, as well as an online tool for self-assessments.

Health & Safety


Anadarko’s Crisis and Emergency Management (CEM) Team continues to be an important contributor to risk reduction, operational consistency and regulatory compliance. CEM drives corporate response preparedness through training, planning, equipment depots, exercises and consistent evaluation and adjustment.

Anadarko continues to be a leader of CEM in the industry and participates in advocacy organizations to maintain awareness of regulatory changes and inform the regulatory process in all areas of operations. We are a member of an equipment and service consortia that provide response and containment resources to address negative impacts of identified risks. The organization plans and conducts training in accordance with regulatory guidelines and industry standard practices.

The CEM Team’s mission is to reduce risks during normal business operations by increasing the Company’s emergency preparedness. CEM coordinates risk assessment and subsequent incident mitigation planning. The safety and health of the public, employees and contractors are top priorities for all operations.

Anadarko’s Primary Goals During an Incident:

• Protection of people, the environment and assets

• Response support to affected areas

• Optimal utilization of Anadarko’s resources

• Effective communication and cooperation with key regulatory agencies and other stakeholders

• Restoration of business

“One Team”The HSE “One Team” was created to increase our preparedness and ability to respond to incidents of all magnitudes by our operational integrated asset teams. By utilizing the HSE “One Team,” we can be better prepared to respond to an event.

This team is comprised of more than 800 trained personnel across the s and disciplines. The team also includes memberships in local, national and global cooperatives, mutual aid initiatives and commercial specialty contractors. Members of the “One Team” must perform their assigned duties and functions in a safe and efficient manner to prevent endangering themselves or others when responding to the event.

Crisis & Emergency Management

1. Site Management

and Control

5.Information

Managementand ResourceCoordination

2.Identify the

Problem

3.Hazard and

Risk Evaluation

4.Select Personal

ProtectiveEquipment

8.Terminate the

Incident

7.Decontamination

6.ImplementResponseObjectives

INCIDENT PRIORITIES1. Life Safety

2. Incident Stabilization3. Proper Conservation

CRISIS & EMERGENCY MANAGEMENTNECESSARY AND READY TO RESPOND


REGIONAL HIGHLIGHT

Crisis & Emergency Management

MEXUS ExerciseOn April 26, 2016, Anadarko hosted and participated as the operator for an all-day Mexico – U.S. (MEXUS) Table-Top Exercise. More than 100 participants from U.S. and Mexico government agencies, Anadarko’s Gulf of Mexico Incident Management Team and key contractors engaged in discussions and shared information. The purpose of the exercise was to understand each country’s policies and procedures responding to a hypothetical transboundry offshore spill from a subsea well incident.

Coordinating emergency responses with an offshore spill incident requires multiple communications efforts across government agencies, environmental groups, and law enforcement. The challenges in coordinating such efforts when an incident happens in international waters are significant. The MEXUS initiative is designed to minimize these challenges with biennial meetings and exercises such as the one hosted by Anadarko.

“We have a large stake in the outcome and a lot can be learned from all participants. The complexity of dealing with multiple agencies in the U.S. plus their counterparts in Mexico is a real challenge. One of the many practical benefits of this exercise is that we come together and get to know the people who would be involved if anything ever did happen.” – Vice President, HSE David McBride.

Anadarko was the first independent oil and natural gas company to be asked by the U.S. Coast Guard to participate in this international initiative. The exercise helped prepare participants for a full-scale exercise scheduled for March 2017.


Air Quality Initiatives and Regulatory ActivitiesIn 2016, air-quality regulatory activities continued to evolve, increasing uncertainty for the exploration, production and midstream oil and natural gas sectors. Most of the federal regulations were a continuation of the U.S. Climate Change Strategy.

An internal Air Strategy and Advocacy Team continued to streamline collaboration and response efforts and worked with trade organizations, peers and regulatory agencies to provide risk-mitigating and solution-focused comments.

The Greeenhouse Gas (GHG) and Air Quality Committee, which reports to the Board of Director’s Governance and Risk Committee, works to identify and prioritize federal policy matters to determine strategies for engagement with regulatory officials and to mitigate risk around air quality and GHG related matters.

In 2016, we continued to enhance the data set around air emissions and transparency to the public. The team continued to participate in the Environmental Defense Fund’s (EDF’s) Methane Detector Challenge – a collaborative effort to develop a low-cost methane sensing technology for use at oil and natural gas facilities.

We also participated in three of a series of EDF methane measurement studies, with the final summary report expected to be issued in early 2017. Through these studies, it was estimated that less than two percent of total methane was “lost” or leaked from the industry. Our participation provided more accurate data to regulators and the general public, while providing the industry with better information on how to capture more methane.

Air

AIRKEEP PRODUCT IN THE PIPE


Onshore U.S. Federal Regulations and Decisions on Air Quality

Rule/Decision Status

Source Determination Regulation Final Regulation

Ozone Standard (70 ppb) Final Standard

New Sources Subpart OOOOa Regulation Final Regulation

Tribal Permitting Final Guideline

CEQ Greenhouse Gases Guidance Final Guidance

Clean Power Plan Regulation Final Regulation

Information Collection Request (ICR) (existing sources) Final Agency Letters Sent

Bureau of Land Management Venting and Flaring Final Regulation

Air

REGIONAL HIGHLIGHT

U.S. OnshoreWe continue to work on the “Design for the Future” focusing on designing and constructing facilities that will result in low air emissions, while reducing overall risk and cost. The workgroup is comprised of engineering and HSE air staff from across our U.S. Onshore Operations, working together to create a process to increase consistency and collaboration and ensure operational certainty with the increasing number of regulations. Ideally, the facility of the future will be minimally impacted by the increasingly stringent air regulations.


Water Vision for AnadarkoAnadarko continues to focus on evaluating and mitigating risk and maximizing opportunities for water management, including an emphasis on reducing the risk of induced seismic events. In 2016, there was a focus on educating federal and state regulators and engaging with researchers to maintain water use optionality. Our message to stakeholders is that:

• Water is a resource

• Water is treated and reused around the world

• Produced water should be treated as any other waste water

• States should be allowed to regulate it as any other waste water

The Strategic Water Committee (SWC) assists Anadarko in the management of water and related environmental matters, using the five-part water strategy below. The Committee reports to the Board of Directors on an annual basis.

2014

2015

2016

Formed Strategic Water Group Developed Water Strategy Initiated Water Data Mapping Project

• Completed Water Data Mapping Project

• Issued EWI U.S. Onshore Unconventional E&P Water Case Studies Report

• EWI Sharing Technical Water Information

• Held Water Summit

• Initiated Water Data

Team

• Created Delaware Basin Water Team

• Piloted and Developed Water Risk Tool

• Issued Seismicity Guidance

• Created Midstream Commercial Water Role

• Developed Water Lifecyle Cost Tool

• Conducted Disposal Well Mapping Project

• Implemented Water Lifecycle Cost Tool

• Completed Disposal Well Mapping

• Presented to Groundwater

Protection Council• Issued Texas A&M Cotton Growing

Study Report

• Formed Water Company

• Met with Colorado on Discharge Permit

• Presented to National Academy of Sciences

• Spoke at EPA Hydraulic Fracturing Water Study

• Joined Texas Center for Integrated Seismicity Research

• Presented to National Governors Association

• Presented to National Association of Utility Regulatory Commissions (NAURC)

• Finalized Revised Seismicity Guidance

• Met with federal policy makers about maintaining produced water as a resource

Q1

Q1 Q2 Q3 Q4

Q3Q2 Q4

Q1 Q3Q2 Q4

CommunicationAssurance TechnologyDevelopment AdvocacyPrudent Use

Identify sustainable, reliable and

resilient water sources for each asset

Support operations in reviewing and

testing use

Be aware of new and emerging

technologies

Focus on the development and documentation

of emerging good practices

Work with industry trade

groups and stakeholders

Strategic Water Committee (SWC) – Five-part Strategy

Committee Continuing Advancements

Water

WATERMAINTAINING OPTIONALITY


U.S. Federal Regulations and Decisions on Water Quality, Hydraulic Fracturing and Other

Rule/Decision Status

U.S. EPA Regional Consistency Memo U.S. EPA Guidance

Waters of the U.S. Definition Rule is Stayed

BLM Hydraulic Fracturing Rule Rule is Stayed

RCRA E&P Waste DefinitionConsent Decree Pending Decision

U.S. EPA HF Drinking Water Draft Report

Final Report

NGO Petition to Redefine Aquifer Protection Level Agency Decision Pending

Gulf of Mexico Water Discharge Permit Revisions (U.S. EPA) Proposed General Permits

Ban Discharge of Produced Water to Public Water Utilities Final Regulation

Effluent Limit Guideline (ELG) for Produced Water Proposed Guideline

Water


REGIONAL HIGHLIGHT

Delaware Basin, TexasAnadarko and its sponsored master limited partnership Western Gas Partners, LP (WES) further enhanced focus on water in the Delaware Basin in 2016 by creating a commercial water company to serve Delaware Basin upstream producers. The company, DBM Water Services, LLC, is a subsidiary of WES and provides produced water gathering and disposal services. DBM Water Services is actively planning for the future of produced water management by forming a research and development team to characterize injection formations in the basin and study leading-edge water-treatment technologies that will enable large-scale recycling and reuse of produced water. DBM Water Services further intends to build infrastructure that is connected and shared by upstream producers to minimize cost and maximize efficiency.

DJ Basin, ColoradoThe DJ Basin water team used Anadarko’s water risk tool to identify and evaluate potential risks associated with life-cycle water management, including sourcing, transportation, treatment, use, and disposal. In order to minimize risk, the team uses a combination of permanent and temporary water lines to move fresh water to locations. Accomplishments include:

• Delivering more than 140 million barrels of water through the Water on Demand system using more than 150 miles of water pipelines installed to-date and serving multiple completion crews

• Entering into a research project with Colorado School of Mines for DJ Basin produced water treatment and recycling research

• Measuring a reduction in annual costs by 40 percent, while increasing operational flexibility in water use and preserving the ability to order additional option water as needed

• Developing a new water business to lease surplus Water on Demand water supplies and/or pipeline capacity to third parties which generated more than $500,000 in 2016

• Working with multiple state agencies to clarify primacy and regulations governing produced water recycling in Colorado

• Developing a produced water and flowback water projection model to use for disposal and recycle planning, including negotiations with regional vendors for 2017 services

Water


Marcellus Water Recycling Progress

REGIONAL HIGHLIGHT

Appalachia*The Marcellus team capitalized on the spirit of innovation when faced with what to do with produced and flowback water. The team recycled 100 percent of produced and flowback water while completing wells. They began collaborating with logistics sources to provide a secondary plan to manage the future fluid levels with water movement by rail if the first plan was not successful. The team has been working on treatment technologies to allow discharge for third-party beneficial use. We worked with multiple entrepreneurial companies to move water-treatment technology forward.

*In December 2016, Anadarko announced an agreement to divest its Marcellus Shale assets.

2014 Produced Water Handling




Water


Anadarko’s conservation efforts are rooted in each phase of the development cycle. We make it a priority to partner with landowners, government regulators, environmental and nongovernmental organizations (NGOs) and educational institutions to promote conservation and implement technologies and practices that protect the environment and all that depend upon it.

From monitoring wildlife habitats and tailoring development plans to planting native seeds as a part of reclamation efforts, we are proud of our approach to protecting and preserving our natural world in a manner that adds value to local and global stakeholders.

Before developing oil and natural gas resources, we work with third-party experts to identify and minimize potential impacts to the environment and native species. During operations, great care is taken to minimize disturbance to both humans and animals – modifying operations if necessary. When drilling and completion operations have concluded, staff work with landowners to reclaim the land back to its native state. In some cases, the land is restored to enhance wildlife habitats. During reclamation efforts, partnerships are developed with independent experts in universities and federal and state governmental bodies to preserve natural habitats and protect native species.

Reducing Our FootprintIn 2016, Anadarko continued to focus on reducing overall environmental footprint while maximizing production through the continued utilization of horizontal drilling technology. As shown in the figure below, horizontal and directional drilling reduce the disturbance, fragmentation and activity profiles associated with modern oil and natural gas development. The percentage reduction in landscape disturbance due to the shift from vertical to directional and horizontal drilling could be nearly 70 percent, with additional associated reduction in road, pipeline and power line disturbance and fragmentation.

Land & Wildlife

LAND & WILDLIFECONSERVATION IN PRACTICE

Vertical Well Pads (16 per section) Directional Well Pads (4 per sections) Horizontal Well Pads (2 per sections)


Land & Wildlife

Reclamation and Restoration Reclamation is the process of returning lands that have been disturbed to a condition that will meet specified regulatory requirements and/or other landowner or surface-use agreements. Anadarko has a reclamation program that guides its operations from the earliest planning phases of the project. Reclamation actually begins prior to construction. A reclamation plan is included in the surface-use plan of operations, which must be approved before any construction can begin. Integrating reclamation into operations in this way is critical to successful reclamation. The ultimate objective of reclamation is ecosystem restoration, including restoration of the natural vegetation community, hydrology, and wildlife habitats. In most cases, this means a condition equal to or closely approximating that which existed before the land was disturbed. Reclamation must achieve short-term stability, meet the visual, hydrological and productivity objectives of the surface-management agency, and include the steps necessary to ensure that long-term objectives will be reached through natural processes. Reclamation restores the original landform or creates a landform that blends in with the surrounding landform. Successful reclamation, over time, allows local native species to re-establish on the site, and the area to regain its original productive and scenic potential.

Environmental Accruals and RemediationAnadarko is subject to various environmental remediation and reclamation obligations arising from federal, state and local laws and regulations. These obligations, associated with legacy properties or discontinued operations, totaled $118 million at the end of 2016. These are publicly reported in detail in our Form 10-K filed with the U.S. Securities and Exchange Commission.

The Corporate HSE Services Environmental Team is responsible for the management of the environmental reserves. The Team works to reduce liabilities and risk by restoring legacy oilfield sites to state and federal regulatory-acceptable standards, thus allowing for re-use or divestiture of the sites.


REGIONAL HIGHLIGHT

Big Game MigrationFew phenomena in North America are as majestic as the big game migrations seen in Wyoming. Thousands of animals make annual treks to and from winter and summer ranges. We studied these migration patterns in areas we operate and tailored our operations to avoid impacts. These studies are helping develop the science guiding the State of Wyoming’s policy to manage migration corridors for big game, such as mule deer, to safeguard valuable wildlife resources for future generations.

Previous studies in the state were developed when the oil and natural gas industry primarily used densely spaced vertical wells that had greater impact on wildlife habitats. Today, the modernized oil and natural gas industry uses directional and horizontal drilling to reduce surface disturbance by up to 70 percent. This means teams can develop Wyoming’s resources with as few as one well pad per square mile – well under the state’s recommended development level of no more than four well pads per square mile within migration corridors.

Niassa Lion ProjectThe Niassa National Reserve in northern Mozambique is one of the most unique wild places on Earth. Traditional leaders approved a site within the Reserve for an initiative by the Niassa Lion Project (NLP) that sought to bring jobs and skills training to the communities that live side by side with lions, leopards and elephants. Recognizing the importance of preserving Mozambique’s lion population and natural heritage through conservation and education, we supported the construction of the NLP’s Mariri Environmental and Skills Training Center. The goal of the Center is to promote coexistence with the unique wildlife by providing locally relevant, practical skills training and education.

The NLP promotes coexistence between people and wildlife, while acknowledging the cost to these communities. The NLP’s vision is to recognize the potential ecological, cultural and economic benefits to the people of the Niassa Reserve and all of Mozambique. Implemented by and for Mozambicans, the Center was built by a construction team composed entirely of local villagers using locally sourced materials whenever possible. For every brick made for the Center, another brick was made for community projects such as adult-education classrooms and water tanks.

Rocky Mountain RaptorsField operators in the DJ Basin are quite familiar with raptors soaring above Anadarko’s facilities in Colorado. Though these impressive birds of prey are common sight overhead, rarely does any employee have a one-on-one interaction quite like operator Michael Mason. During his daily travel to wells in the area, Mason spotted an eagle that appeared to be injured. “After observing the eagle for about 15 minutes, I decided to call my foreman and see if he had a phone number for the Rocky Mountain Raptor Program (RMRP).” Mason then sent photos of the injured raptor to RMRP Rehabilitation coordinator, who picked up the bird for evaluation and treatment. After three weeks of treatment and observation, the eagle was taken to the RMRP’s Flight complex, where it displayed its strong health by immediately trying to fly to one of the high perches. Mason attended the release of the eagle where he originally found it.

Land & Wildlife


REGIONAL HIGHLIGHT

Rancho Encantado Duck Habitat*The Rancho Encantado duck habitat project in South Texas is an example of our commitment to conservation and ensuring operations are compatible with surrounding areas. We approached the ranch during the planning phase to determine whether excess soil and other material from sitework could be used instead of trucking it off the land. With the landowner, we decided the land could be used to build a duck marsh next to the facility, which enhanced the existing wetland area and created sustainable habitat for native duck populations. Protecting the environment and natural diversity goes hand-in-hand with our goals and these of the landowner.

PhytoremediationIn Enid, Oklahoma, the team has deployed phytoremediation (the use of plants to remove, degrade or control legacy oilfield impacts) to aid in the cleanup of a former legacy refinery site. The trees will control the migration of dissolved hydrocarbons in groundwater at the site while other remedial technologies are used to degrade the residual hydrocarbons in place.

*In January 2017, Anadarko announced an agreement to divest its Eagleford Shale assets in South Texas.

Land & Wildlife


Hydraulic Fracturing Committee (HFC)Anadarko’s HFC meets regularly to assist management in:

• Recommending actions regarding the use of hydraulic fracturing fluid formulations

• Reviewing the hydraulic fracturing fluid formulations publicly shared by third-party vendors

• Promoting the use of fluid formulations that present a more environmentally benign profile to accomplish the Company’s hydraulic fracturing operational objectives

• Maintaining compliance with state chemical use reporting requirements, including reporting into FracFocus.org

The HFC reports to the Board of Directors on an annual basis.

Transparency to StakeholdersIn 2016, we again expanded the information available on our external website to address investor questions about products used. This contributed to increasing the Company’s score in the 2016 “Disclosing the Facts” report (see Sustainability Reporting section).

We use the Chemical Assessment Rating Evaluator (CARE) tool to assess products used in fracturing. This enables staff to conduct a rigorous review of chemicals and the relationship to human health based on international and national guidelines. Our engineers can use this quantitative measure to improve the environmental profile of the fluids and materials used in the hydraulic fracturing process.

Regulatory UpdateThe U.S. EPA initiated a study in 2009 at the request of Congress to evaluate whether hydraulic fracturing has impacted groundwater quality in the United States. Through May 2016, U.S. EPA held stakeholder meetings to receive feedback on its draft report. Five Anadarko employees including David McBride, VP HSE participated in the March public hearing and made personal statements on behalf of Anadarko about the safety of operations. In December 2016, the U.S. EPA issued the final report and stated: “EPA’s report concludes that hydraulic fracturing activities can impact drinking water resources under some circumstances and identifies factors that influence these impacts.” Anadarko continues to work to mitigate the risks identified in the report.

Chemicals & Hydraulic Fracturing

CHEMICALS & HYDRAULIC FRACTURINGIMPROVING EVERYDAY


U.S. EPA Identified Issue

Current State Actions

Anadarko Practices to Reduce Risk

Focus on quantity of water used in drought areas

States are preparing water plans or asking for data

• Participated in Colorado State Water Plan

• Works to increase water recycling and reduce fresh water use

• Works with Texas Water Development Board on data

• Works to enhance research into water-treatment technology

Need for greater stringency for water discharge permit limits

States have strong water discharge permit programs

• Manages water usage to maximize recycling and reuse

• Conducts on going internal assessment for beneficial reuse of produced water

• Engages with state and federal regulators on appropriate limits

Attention on seismicity and disposal wells

States have strong programs and U.S. EPA has the UIC program

• Prepare for alternatives to disposal wells

• Extensively evaluates location of potential new wells to ensure best geologic conditions exist for siting the well

• Works with state agencies to reduce risk

Continued focus on chemicals used

States require disclosure of chemicals used

• Founded FracFocus and is a top reporter

• Operates the CARE process

• Cooperates with states in updateing regulations

Greater focus on spills (particularly of produced water)

States have spill reporting and management programs

• Complies with regulations

• Utilizes data to trends causes and develop mitigation strategies for spills

• Has a contractor spill awareness and prevention program

Chemicals & Hydraulic Fracturing

U.S. EPA Hydraulic Fracturing Study


Spills & Waste

Spills are PreventableAnadarko is committed to preventing and minimizing the impacts of spills everywhere it operates. This commitment is demonstrated by the implementation of best management practices, engineering design, mechanical integrity, product assessment and training. We promote a culture that enables employee involvement in maintaining a safe work environment, while recognizing that environmental incidents are preventable. The teams strive for ZERO incidents. We believe spills can be prevented by designing and operating equipment and training staff to avoid releases.

The HSE and Operations teams are dedicated to seeking and implementing new approaches to affecting behavior. If an event does occur, corporate and regional emergency response teams are prepared to respond. To maintain our preparedness, integrated asset team response plans identify the critical staff, training and resources necessary to effectively respond.

Examples of Spill Prevention Practices and Technology Enhancements

Contractors are required to have written spill prevention plans, loading and unloading procedures and appropriate training plans and procedures

Prevention procedures are required prior to any unloading efforts

All incidents shall be immediately reported to Anadarko

High standards of housekeeping are expected

Response procedures are required if any spill occursImpermeable material lining well pad areas to prevent spills and releases from contacting the ground

Diversionary structures and storm-water management practices

Integrity testing of high-pressure surface equipment

Closed-loop drilling fluid management systemsReplace water hauling by truck with lay-flat temporary hoses

SPILLS & WASTEWASTE TO PROFIT THROUGH PREVENTION

Eliminating Waste Improves Bottom LineWe continue to evaluate life-cycle costs associated with various types of waste, including produced water. Costs associated with waste can make up a large portion of the environmental budgets for Operations. Examples of such costs are: underground injection, landfill disposal, treatment and discharge to surface waters, incineration, evaporation and trucking. In addition, there has been greater focus on produced water disposal wells and induced seismicity.

To reduce risk and cost, the HSE teams have begun to ask whether “zero waste” can be achieved. Eliminating waste can also reduce the Company’s potential liability related to landfills, social license to operate and cleanup or remediation.


Erosion Control in the Powder River BasinThe Powder River Basin team has developed an innovative way to reduce waste. Instead of using erosion controls that would require disposal in landfills, they use wood straw produced from pine-beetle killed trees. Not only does this reduce waste and use recycled, organic materials, it also improves water quality by reducing sedimentation and leaving no residual agricultural chemicals. Furthermore, the wood straw conserves water as it retains moisture and improves infiltration, with no water used in the application process. It also improves soil quality by adding organic matter to the soil and reducing soil compaction and trampling of vegetation by animals.

Garnet Blast Media RecyclingAnadarko’s Gulf of Mexico production facilities recycled over 800 tons of spent garnet blasting media in 2016. This is double the volume of spent garnet that was recycled in 2014.

Spills & Waste

Minimizing Seismic Risk of Water DisposalInduced seismicity is commonly defined as earthquakes that are caused by a variety of human activities. The U.S. Department of Energy defines it as: “earthquake activity resulting from human activity that causes a rate of energy release, or seismicity, which would be expected beyond the normal level of historical seismic activity.”

Along with the oil and natural gas that are produced during drilling, potentially large amounts of natural saline brine water (formation water) may also be produced. The water must be separated from the oil and natural gas and, in some cases where treatment and recycling is not feasible, re-injected back into subsurface formations through the use of injection wells permitted in compliance with federal and state regulations. Such wells are common in oil and natural gas producing areas around the globe.

The relatively recent increase in seismic events in some isolated regions of the United States, including southern Kansas, Oklahoma and northern Texas, have led to numerous studies and increased deployment of seismic monitoring stations. These stations increase data sampling and better enable independent researchers, regulatory bodies and industry partners in their efforts to study the possible correlation between wastewater disposal and increased seismic activity under unique geological conditions.

Anadarko StrategyAlthough the seismic activity referenced above is generally occurring in areas where Anadarko has limited or no operations, the company is reviewing the data collected and monitoring the progress of the studies mentioned. We are also engaging with various independent agencies and other experts to gain better scientific understanding. For instance, we have joined the Center for Integrated Seismicity Research (CISR) to further improve our understanding of the mechanisms that may contribute to induced seismicity.

We use the results and findings of the studies and research on this topic to continually improve the procedures and processes we use to assess the potential risk of induced seismicity from wastewater injection operations. The Company has adopted a detailed review process that includes evaluating the surrounding area for current and historical seismicity, site geology including mapped faults, well construction data, and other operational parameters. In addition, Anadarko has implemented comprehensive strategies in its major operations areas to reduce the need for wastewater injection. These efforts include recycling programs in Colorado, Pennsylvania and Texas.

REGIONAL HIGHLIGHT


Anadarko’s auditing process is a key component to our operational success and provides an internal evaluation of whether our teams have achieved and maintained conformance with applicable regulations and internal programs. Audits are a collaborative effort of Operations, HSE, Engineering and Management to identify areas of improvement, develop solutions and achieve operational excellence.

To provide compliance assurance for the Company’s facilities and production areas, the HSE Audit Program consists of HSE compliance audits and Process Safety Management (PSM) audits. In 2016, nine HSE audits and eight PSM audits were conducted in accordance with applicable federal and state requirements.

Findings from each audit are published in a site-specific Audit Report. Corrective Action Plans (CAPs) are prepared by the audited facility to address deficiencies identified in the Audit Reports. The CAPs define the actions required to resolve the audit findings and the due date for completion.

Progress Reports are provided to Senior and Operations Management regarding the status of each CAP on a quarterly basis and are tracked to closure. Raising organizational awareness about CAPs and their timely closure improves audit effectiveness and drives operational excellence.

1 2 3 4 5

Prepare Corrective

ActionPlan (CAP)

Monitor Closure of

CAPs

MaintainCommunication

ConductAudit

Issue Initial Report

Audit Process – Annual Cycle

Audits

AUDITSACHIEVING OPERATIONAL EXCELLENCE


Audits

REGIONAL HIGHLIGHT

Management System AuditBureau Veritas Certification (BVC) conducted a comprehensive audit of Anadarko documents, records, plans, policies, procedures and facilities over an approximately four-week period. The Anadarko Management System (AMS) was found to be in compliance with federal regulations, as well as applicable best industry practices. Further, BVC concluded that appropriate documentation was maintained to substantiate the Company’s compliance. The BVC audit team concluded that Anadarko has an effective AMS/SEMS that complies with all applicable standards and is effectively managed and implemented in the operational environment. There were no nonconformances or concerns identified. Additionally, 19 “industry best practices” (Good Practices) were identified by the audit team during this audit.

For the exploration activities in Colombia, Bureau Veritas also conducted a gap analysis of the Anadarko Management System – International against the operating management system framework of International Association of Oil and Gas Producers (IOGP) 510. The review showed alignment and no gaps with the international standard. The results also met the expectations of the Agencia Nacional De Hidrocarburos (ANH) in terms of demonstrating the Company’s capability to manage the environmental aspects of our activities in Colombia.


Training is the transferring of knowledge and skills necessary for success. Within Anadarko, training is assigned at the corporate level and by integrated asset teams. Training encompasses compliance and legal requirements, company policies and procedures, HSE programs, best practices and other unique training requirements. On average, employees receive approximately 22 hours of training per year. Below are some examples of different HSE training topics.

HSE Training Topics

Training TopicFor all topics: understand the purpose, function, restrictions, responsibilities and terms used in the programs. Identify associated hazards and methods for controlling the hazard, including other relevant programs.

Air QualityComprehend the basics of air quality regulations, compliance and permitting.

Confined SpaceRecognize the risks and characteristics of confined space classification and identify these areas within the work area.

Driver TrainingUnderstand how to operate a vehicle in a safe manner in compliance with corporate requirements and regulations.

Hazard Communication (HAZCOM) / H2S Awareness

Recognize hazardous chemicals in the work area, as well as their proper receiving, labeling, and storage. Procedures for detecting the presence of and emergency response procedures for hazardous chemicals.

Hearing ConservationKnow the effects of noise on hearing, purpose of audiometric testing and test procedures.

Hot Work / Permit To Work / Job Safety Analysis (JSA)

Understand the procedures for conducting Hot Work, issuing relevant permits and job planning.

Lock-Out Tag-Out / Electrical safety

Understand the proper application, removal, and limitations of locks and tags. The student shall be able to inspect electrical equipment and report deficiencies.

Naturally Occurring Radioactive Material (NORM)

Understand the hazards, properties, characteristics and toxicity of NORM. Know the sources and methods for minimizing exposure.

Personal Protective Equipment (PPE) / Fall Protection / Respiratory Protection

Identify the requirements and limitations of PPE, fall protection and respiratory. Understand how to select, don, doff and maintain equipment.

Waste Management & Minimization

Understand the expectations, conditions, and procedures applicable to managing waste in all phases of Company operations.

Training

TRAININGREDEFINING SUCCESS


Training FairsTo assist personnel in completing assigned training, several HSE integrated asset teams have initiated a Training Fair concept. They organize bi-annual or quarterly training fairs to provide opportunities for a wide range of staff to attend multiple training courses at a single time. This strategy allows personnel to:

• Participate in instructor-led training that allows for question and answer exchanges, as well as unexpected learning activities

• Share ideas, problem solving and discussion with peers

• Engage in learner-centered activities to reinforce the training concepts

• Network with colleagues and interactively problem solve

• Reduce expenses by consolidating training during the course of the fair (versus attending individual events) and reducing time away from assigned duties

• Attend the training an individual needs to fulfill compliance requirements

In addition, the HSE staff delivers safety conscious instruction through formal monthly safety and tailgate meetings held at Area Office locations. There are also ongoing regulatory and non-regulatory classes, seminars and orientations provided at various levels across the Company.

New Training ElementsIn 2016, Anadarko put a number of enhancements or new training modules in place. In order to increase knowledge retention in the training program, 12 modules were enhanced to increase active learning. When using active learning, trainees are engaged in more activities than just listening or reading through a script; they are involved in problem solving and higher-order thinking (e.g., analysis, synthesis, evaluation).Additionally, to strengthen the company’s Process Safety initiatives, six process safety training modules were implemented as mandatory new topics. These include:

• Working with Pipeline Systems

• Working in Oil and Gas Production Operations

• Job Hazard Analysis and Stop Work Authority

• Production Facility Gas Processing

• Instrumentation: Process and Instrumentation Drawings

• Process Safety Management (PSM)

Training

2016 Training Focus Areas (Staff Training Hours)


Internal Employee and Team Awards

Anadarko has a multi-faceted internal awards program. The goal of the HSE Recognition and Awards Program is to promote a positive attitude and healthy competition with regard to HSE compliance and promote a proactive and innovative HSE culture. Each eligible employee has the opportunity to be recognized for individually contributing to work groups. In particular, the Safety and Environmental Excellence Program (SEEP) continues to provide best practices across the integrated asset teams to continually improve HSE and sustainability efforts and performance.

In 2016, we evaluated the HSE and sustainability award programs in order to focus and optimize the benefit to the organization going forward.

Award Criteria2016

Recipients

Annual Individual Award

• During the calendar year, no recordable case, late injury or vehicle incident report, preventable vehicle accident

• Not a primary contributor to injury or damage

• Complete 100 percent of core HSE training

• Additional integrated asset team requirements

• 2,155 individuals

Driving Award• Five calendar years with no preventable vehicle

incident

• Must be current on driver-safety training• 485 individuals

Workgroup Award

• 200,000 hours or two years without a recordable case

• Includes employees and OSHA-defined temporary employees

• 600,000 hours: Carthage, Colorado & Utah

• 400,000 hours: Powder River Basin

• Six years: Woodville East Chalk

Internal Awards & Recognitions

INTERNAL AWARDS & RECOGNITIONPROMOTING A POSITIVE WORKPLACE


Safety and Environmental Excellence Program (SEEP) Awards

The SEEP was developed to share HSE and sustainability best practices throughout the organization. Each integrated asset team presents on their HSE performance for the previous year and a panel of judges determines “best in class” performance.

Award Criteria2016

Recipients

Chairman’s Award

• Best Overall Safety

• Best Overall Environmental

• Maverick

• Wattenberg

EVP’s Award • Runner-Up to Chairman’s Award• GOM Deepwater Facilities

• Rockies Drilling

VP Award• Best Overall Safety

• Best Overall Environmental

• Maverick

• Wattenberg

• Utah

• Powder River Basin

Honorable Mention

• Significant Improvement Safety

• Significant Improvement Environmental

• Special or Proactive Project

• New Personal Best

• GOM Production Operations

• GOM Deepwater Facilities

• East Chalk

• Freestone

• Southwest Wyoming

• Southern Completions

Most Improved • Most Improvement Environmental• Maverick

• Southern Drilling

Internal Awards & Recognitions


We seek to proactively in engage with local governments and the citizens they represent, and we respectfully communicate with our stakeholders impacted by the responsible development of oil and natural gas resources. We hold true to our core value of open communication. Therefore, we prioritize working with stakeholders at all levels to share information on our operations. This includes listening to and addressing concerns, as well as explaining how a well is drilled and hydraulically fractured or completed, how we use best management practices to mitigate impacts, and the economic benefits created by our activity.

We value two-way dialogue, so we listen to understand concerns in order to communicate in a meaningful way. We encourage collaborative efforts for the betterment of the communities where we live and operate.

DJ BasinA primary function of proactive engagement is to identify stakeholder organizations within the communities in which we operate. We then work to establish and maintain lasting relationships by finding a common understanding among stakeholder groups. Through proactive engagement, employees are able to identify shared values and opportunities to align operational practices with the needs of the community. In 2016, the Stakeholder Engagement Team focused on strategic planning and proactive engagement. Stakeholder engagement is a multidisciplinary effort, with engagement plans customized to the needs of each community.

Members of the Stakeholder Engagement Team seek to facilitate opportunities for two-way communication with key stakeholder organizations within our mineral acreage positions such as schools, first responders, homeowners’ associations, religious and civic organizations. These opportunities are tailored to meet the community’s values and needs.

Stakeholder Engagement & Social Investment

STAKEHOLDER ENGAGEMENT & SOCIAL INVESTMENT – LEADING THE WAY

Organization Number

Area of Interest 41

Chamber of Commerce 7

Civic Organization 2

First Responders 31

Higher-Ed/Research 1

Homeowners’ Associations (HOA)

143

K-12 Schools 38

Land Developers/Real Estate 25

Large Employers 16

Medical Facility/Hospital 4

Non-Profit 1

Religious Organizers 58

Town Government 16

Grand Total 383

2016 Community Engagements

Activity Number

Community Forums 5

Open Houses 1

Door-to-Door Engagement 14

Advocate Deployment 13

Field Tours 5

Active Community Participation 6

Appreciation Gatherings 1

Stakeholder Dialogue & Relationship Building 21

2016 Community Activities


Color by Organization Category

Area of Interest

Chamber of Commerce

Civic Organization

First Responders

Higher-Ed/Research

Homeowners’ Association

Land Developer/Real Estate

Large Employer

Legislator

Medical Facility/Hospital

Non-Profit

Religious Organization

K-12 School

Tactical Engagement

Town Government


Anadarko DJ Basin Mineral Acreage - 350,000 net acres (Colorado)


Colorado Response LineAnadarko’s Colorado Response Line (Response Line) is a primary mode of capturing real time feedback from stakeholders who experience impacts from Operations, regardless of the stage of development.

The Response Line is published through a wide variety of outlets, including direct mail, regulatory channels, in-person engagements and community events. Anadarko responds to inquiries within 24-hours and routinely resolves stakeholders concerns in ten days or less.

Inquiries and concerns are carefully cataloged in the Grievance Management Resolution Mechanism (GMRM) database. GMRM allows for the tracking, development and implementation of unique mitigations for stakeholders who utilize the Response Line. The stakeholder feedback is translated into business intelligence to inform operational decisions and reduce or remedy the impact of oil and natural gas development on surrounding communities.

The Response Line functions as a mechanism to gather data, advise future planning of stakeholder issues and address stakeholders’ real-time concerns as expediently as possible.

Other 29 percent

Weeds – 5 percent

Aesthetics – 4 percent

Water Quality – 4 percent

House Gas – 4 percent

Gate/Fence – 3 percent

Other – 3 percent

Communication – 2 percent

Quality of Operations – 1 percent

Royalty Accounting – 1 percent

Air Quality – 1 percent

Line Locate – 1 percent

Proximity – 1 percent


Stakeholder Tickets by Category – 2016 ~850


MozambiqueAnadarko is proactively approaching stakeholder engagement in Mozambique because we recognize the value and importance of maintaining constructive relationships with diverse stakeholders.

Stakeholder concerns that may arise among communities or third parties are responded to, addressed and managed in a prompt, transparent and systematic manner. To maximize our response, we have established a robust feedback mechanism to open lines of two-way communication with affected parties, and to accept, assess and resolve community and third-party issues. We implement culturally appropriate, meaningful and continued engagement activities and openly and transparently communicate about project impacts, activities and opportunities. These efforts are supported by sharing information in a timely fashion on subjects relevant to stakeholders’ interests and lives.

During 2016, considerable efforts were made to improve our community feedback mechanism, specifically improving the quality of resolution and corrective measures, which in turn contributed to an improved perception among communities of the efficiency of the mechanism. Continuous improvement of the system can only be achieved through stakeholder collaboration.

Another important type of stakeholder engagement is with civil society organizations (CSOs). In Mozambique, CSOs play a prominent role in informing public opinion on development issues, specifically the development of the oil and natural gas sector. During 2016, the Mozambique project’s Stakeholder Engagement and Social Affairs team embarked on a focused engagement program with civil society, including frequent and proactive engagements with international, national and locally based non-governmental organizations (NGOs) and CSOs. One of the key aims of the engagement program is to provide a credible channel to regularly share accurate, relevant and meaningful information with CSOs, based on issues and concerns that are real and material to them. In response to this enhanced engagement, CSOs have commented that they respect the project’s efforts to provide opportunity for collective discussion and deliberation on complex and multi-faceted issues, and to create opportunities to seek common ground.



PARTNERING IN COMMUNITIES SERVES OTHERS AND ENHANCES OUR SOCIAL LICENSE TO OPERATE

Anadarko provides financial contributions to numerous non-profits, and our employees work as collaborative volunteer partners to provide support that makes a tangible difference, strengthens communities and enhances our social license to operate. We partner with organizations delivering food to the hungry, fostering education, protecting the environment, providing social services and more.

Tiered Investment Enhances Effectiveness and EfficiencyIn the U.S., we have established a tiered investment system to prioritize community support. In addition to priority commitments to Habitat for Humanity, Junior Achievement and key local initiatives, we strive to create positive change in communities through United Way. Our employees have supported United Way and its umbrella services for more than 40 years, with the corporation matching employee donations dollar for dollar. A majority of our employees support United Way, often serving on boards of local affiliates, participating in Days of Caring, and making personal donations. In the U.K., we support CARE International through a similar annual fundraising and volunteering campaign. Our top-tier financial support also includes university scholarship funds distributed from Anadarko’s Aid to Education Program in support of engineering and science studies.

Employee Volunteers Are an Essential Resource for the Betterment of Communities and the EnvironmentEach year hundreds of employees help build safe places to live, enhance wildlife reserves and assist elementary school children master core competencies. Employees’ investment of time totals more than 13,000 hours during corporate-sponsored events alone, with countless more hours contributed to home communities. U.S. Domestic Contributions HighlightsAnadarko contributes to national, regional and local organizations. Below are just a few recent examples of our commitment to community investment:

United Way CampaignsEmployees contributed more than $1.4 million in personal pledges and special events, which increased to more than $2.8 million after the corporation’s dollar-for-dollar match. These funds are being put to work every day in communities through a network of service providers.

Junior Achievement – Montgomery County, TXAnadarko’s employees and subject-matter experts helped prepare the next generation in work-readiness, entrepreneurship and financial literacy through support of three schools with financial contributions and dozens of volunteer teachers.

Habitat for HumanityIn 2016, Anadarko employee volunteers completed the seventeenth year of building homes with hardworking families in Texas, Wyoming and Colorado. In that time we have helped build new homes for veterans and multi-family complexes with energy-efficient technology.

Angel Reach Revitalization Project – Conroe, TXApproximately 100 employees supported youth, aged 18 to 24, by helping enhance Angel Reach, an organization focused on providing a next step for young people who have aged out of foster care.

Partnering in Communities


SAYS Science Academy - Carrizo Springs, TXStaff brought their love of Science, Technology, Engineering and Math (STEM) education and careers to the classroom by teaching for several days in partnership with the Carrizo Springs Independent School District during the annual summer SAYS Science Academy.



International Social Investment Highlights

ColombiaWe seek to empower artisanal fishing communities in Colombia´s Caribbean region in a sustainable and holistic manner. We are investing in 26 fishing communities in this region with the design and construction of two cold storage facilities, training in the proper use of those facilities, and training the communities in the proper use of legal fishing gear and good fishing practices, entrepreneurship and organization.

AlgeriaIn 2015, Anadarko joined the U.S. Embassy and two other private firms in pledging financial support to World Learning’s Algiers STEAM Center to encourage dynamic science, technology, engineering, arts, and math education in Algeria. The center was inaugurated in an April 2016 ceremony. Over the year, 12 teachers from four regions completed an eight-week STEAM teaching methodology course. More than 40 high school students have joined the center’s STEAM Club and regularly attend learning activities at the STEAM Center. In August 2016, World Learning organized an intensive two-day STEAM Camp for 112 high school students in Algiers.

Cote d’IvoireIn partnership with the International Rescue Committee (IRC), one of the world’s leading humanitarian and development non-governmental organizations (NGOs), we supported construction of water and sanitation infrastructure for more than 8,000 local beneficiaries in Cote d’Ivoire. Our donation of $200,000 funded nine water wells in eight villages and 60 latrines at ten schools. To ensure the sustainability of the water wells, committees were established in each of the participating villages to ensure oversight and maintenance of facilities and collection of payments. At the schools, hygiene clubs consisting of student volunteers with teacher oversight were established to ensure maintenance of the new latrines. Moving forward, we continue to partner with IRC on improving access to and quality of primary education. In 2016, we initiated a project to build and equip two schools of eight classrooms, providing educational access for 240 children in the Guemon region, an area of Cote d’Ivoire that has been heavily impacted by election-related violence in recent years.

MozambiqueThis year, we continued to demonstrate our commitment to the communities of Mozambique by adding value through social-investment programs. These programs, implemented by specialist partner organizations, are developed from baseline studies and national, provincial and district development priorities, and are closely aligned with project impact management plans. In 2016, the Province of Cabo Delgado awarded Anadarko as the for best company in Corporate Social Responsibility in recognition of our contributions in the north of the country.

Some examples of community investment in Mozambique include:

• Initiating a microfinance project with Adel, a local (Cabo Delgado) NGO partner. The project trains the groups in microcredit and savings methodologies, as well as financial literacy and small business management, so that women can use their savings to invest in sustainable and profitable business ventures.

• Contributing to literacy and teacher training through a partnership with the NGO Progresso.

• Working with the U.S. Centers for Disease Control and Prevention to prevent the spread of HIV/AIDS and other sexually transmitted infections.

• Supporting the training of health workers on pediatric and material care, donating water purification tablets after a cholera outbreak and providing support to government immunization campaigns.





In recent years, Sustainability reporting has become an increasing area of interest for investors. We have made significant strides to improve overall transparency and external recognition for our approach to social, environmental and governance-related topics. We continue to take steps to increase focus on and overall awareness of our growing Sustainability reporting efforts. Below are examples of Anadarko’s scores received from external entities in 2016.

Carbon Disclosure Project (CDP)CDP is an organization based in the United Kingdom that works with shareholders and corporations to disclose greenhouse gas (GHG) emissions and water data and information of major corporations.

Greenhouse Gases Anadarko has reported GHG emissions through CDP since 2005. For our GHG response for 2015 data, Anadarko’s score landed it in the “Awareness” or C scoring level, which is in line with the industry average as well as the CDP program average. This is an improvement from our previous year’s score.

Water The Company began reporting water data in 2013. In 2016, Anadarko was ranked in the “Management” or B scoring level. CDP noted, “Anadarko Petroleum Corporation is measuring its impacts to try and reduce them, has implemented a policy and a strategic framework within which to take action, and has set targets on water issues.”

An example from Anadarko’s report was also included in the 2016 Annual Report of Corporate Water Disclosure (page 38): “Anadarko Petroleum was also able to reduce by 96 percent the number of trucks delivering water to its operations in Colorado, resulting in reduced GHG emissions and impact on local communities.”

CDP GHG Emission 2016 Report Comparison (2015 Data)

Sustainability Reporting

SUSTAINABILITY REPORTINGEXPANDING TRANSPARENCY



Disclosing the Facts “Disclosing the Facts” (www.disclosingthefacts.org) is a report issued every year by As you Sow, Boston Common Asset Management and the Investor Environmental Health Network (IEHN). This report is a scorecard of the 28 largest oil and natural gas companies engaged in hydraulic fracturing in the United States. The group issuing the report states it “gauges how well the … companies do in providing information so that investors can accurately assess how, or whether, these companies manage key risks of fracking, including use of toxic chemicals, water consumption and water quality, waste management, air emissions, methane leakage, and community impacts.”

In 2016, Anadarko increased its score from 15 to 20, continuing its upward trend and earning it the 10th spot on the list.

Additionally, Anadarko’s “leading practices” were mentioned seven times in the report, the second most of any company. Anadarko’s approach in increasing transparency is to focus on what adds value to its shareholders by demonstrating a reduction in risk, cost and liability.

Scorecard

Company

Out of 39 Possible Points*

Out of 43 Possible Points*

2015 Score

2016 Score

BHP Billiton, Ltd. (BHP) 32 40

Noble Energy, Inc. (NBL) 19 35

Apache Corp. (APA) 20 29

Hess Corp. (HES) 21 27

Range Resources Corp. (RRC) 11 27

Southwestern Energy Co. (SWN) 16 27

Carrizo Oil & Gas, Inc. (CRZO) 0 23

CONSOL Energy, Inc. (CNX) 19 22

EQT Corp. (EQT) 14 21

Anadarko Petroleum Corp. (APC) 15 20

Newfield Exploration Co. (NFX) 6 20

ConocoPhillips Corp. (COP) 11 15

Royal Dutch Shell plc (RDS) 11 15

Chesapeake Energy Corp. (CHK) 4 12

Occidental Petroleum Corp. (OXY) 10 12

QEP Resources, Inc. (QEP) 15 12

Encana Corp. (ECA) 8 10

EOG Resources, Inc. (EOG) 8 8

Antero Resources (AR) - 7

Chevron Corp. (CVX) 4 7

Pioneer Natural Resources (PXD) 3 7

BP plc (BP) 8 6

Exxon Mobil Corp. (XOM) 4 6

Cabot Oil & Gas Corp. (COG) 8 5

WPX Energy, Inc. (WPX) 3 4

Devon Energy Corp. (DVN) 7 3

Continental Resources, Inc. (CLR) 2 2

Whiting Petroleum Corp. (WLL) 2 2


Industry-Leading Internship Program

VAULT, INC.

Ranked #2 Energy Internship Program in the U.S., #19 Best Internship for Career Development and #41 Best Overall Internship Program.

Honorable Mention Large Company and Energy Education

INTERSTATE OIL & GAS COMPACT COMMISSION (IOGCC)

Recognized for our mitigation and conservation efforts and for advocacy, knowledge sharing and stakeholder engagement.

Top Workplace in Houston

HOUSTON CHRONICLE & WORKPLACE DYNAMICS

Named the Top Workplace in Houston in the large companies category five out of the last seven years.

Outstanding Operator Award for Stakeholder Relations and Mitigation

COLORADO OIL AND GAS CONSERVATION COMMISSION (COGCC)

Recognized for commitment to engagement, advocacy and mitigation activities across Colorado operations to ensure our operations are compatible with the communities where we operate.

E&P Company of the Year and Award for Drilling Excellence

OIL & GAS AWARDS

Recognizes Anadarko’s Rocky Mountain operating achievements and continuous improvements in safety, efficiencies, environmental performance and stakeholder engagement.

2015 Company of the Year

UNITED WAY OF WELD COUNTY

Recognizes Anadarko’s steadfast commitment to sponsorship and employee engagement initiatives in Weld County, Colorado, and its ongoing support of United Way.

National Achievement Award

INSTITUTIONAL INVESTOR MAGAZINE

Recognized for the sixth consecutive year by oil and natural gas E&P sector analysts for investor relations leadership.

Top 50 Employers

MINORITY ENGINEER MAGAZINE

Included two consecutive years based on reader surveys of companies that minority engineers would most like to work for or believe provide a positive working environment.

Awards Received in 2016





Appendix A

APPENDIX – A

HSE Regulatory Programs

Area

Construction Drilling Completions Production Midstream

Safety

Developing and complying with programs for worker safety, assuring compliance to those programs as well as keeping accurate records of and making periodic reports on work-related deaths, injuries and certain illnesses. This includes programs for Process Safety Management (PSM). Various state laws also regulate occupational safety and health.

Control Air Emissions

Obtaining a required permit prior to commencing construction.

Maintaining compliance with a permit, which typically incorporates other applicable local state and federal requirements.

Obtaining and complying with a permit, including monitoring and reporting.

Protect Surface and Ground Water

Meeting wellbore construction requirements.

Using water and managing flowback water.

Managing produced water.

Preventing storm water runoff, spills and releases and wetland delineation.

Minimizing Impact on Wildlife

Avoiding sensitive habitats and periods of time, developing of plans through NEPA, and preventing migratory birds and other wildlife from being impacted.

Avoiding impacts to wildlife.

Soil ProtectionPreventing spills, properly managing remediation projects and properly reclaiming locations during production operations and upon plugging and abandoning the facility.

Transportation

Adhering to required design, construction, operation and maintenance requirements.

Operating company vehicles in compliance with U.S. Department of Transportation (U.S. DOT) regulations.


Appendix A

Onshore and Offshore U.S. Federal Laws

Asbestos Hazard Emergency Response Act (AHERA) Occupational Safety & Health Act (OSHA)

Clean Air Act (CAA) Ocean Dumping Ban Act / Shore Protection Act

Clean Water Act (CWA) Oil Pollution Act (OPA)

Coastal Zone Management Act (CZMA) Oil Pollution Control Act (OPCA)

Comprehensive Environmental Response Compensation & Liability Act (CERCLA)

Outer Continental Shelf Lands Act (OCSLA)

Emergency Planning & Community Right to Know Act (EPCRA)

Pipeline Safety Act and various regulations

Endangered Species Act (ESA) Rail Safety Improvement Act (RSIA)

Energy Policy Act of 2005 Resource Conservation & Recovery Act (RCRA)

Federal Oil & Gas Royalty Management Act (FOGRAM) Safe Drinking Water Act (SDWA)

Hazardous Materials Transportation Act (HMTA) Shore Protection Act (SPA)

Marine Mammal Protection Act (MMPA) Solid Waste Disposal Act (SWDA)

Marine Protection, Research, & Sanctuaries Act (MPRSA) Surface Mining Control & Reclamation Act (SMCRA)

Migratory Bird Treaty Act (MBTA)Various FAA regulations, circulars and directives for aircraft and drones

National Environmental Policy Act (NEPA)

International Laws and Regulations

Algeria Agencies Agency Role and Key Laws

L’Agence Nationale de Contrôle et de Régulation des Activités dans le Domaine des Hydrocarbures (ARH)

• Hydrocarbon Code and hydrocarbon-related HSE legislation

Ministry of Environment and Land-use (MATE) • May be involved in new regulatory programs

Ministry of Water Resources • May be involved in new regulatory programs

Wali and Wilaya’s Popular Assembly (local authorities)

• Oversee implementation and interpretation of the national law and permit approvals

Sonatrach (National Oil Company)• Indirect influence on new legislative framework for

hydrocarbon operations


Colombia Agencies Agency Role and Key Laws

Congreso Nacional• Issues laws that are regulated by decrees: general

environmental law (Law 99)

Republica de Colombia• Implements water resources programs (Presidential Decree

3930)

Agencia Nacional de Hidrocarburos (ANH) • Issues contracts for offshore blocks

Ministerio del Ambiente y Desarrollo Sostenible (MADS)

• Regulates environment and sustainable development and issues decrees and resolutions governing all aspects relating to the environment: Environmental licenses (Decree 2041)

Ministerio del Interior• Regulates activities on national lands: National Contingency

Plan (Decree 321); Prior consultation with indigenous communities (Decree 1320)

Agencia Nacional de Licencias Ambientales (ANLA) • Issues environmental licenses and permits using resolutions


Brazil Agencies Agency Role and Key Laws

Ministry of Environment (MMA)• Regulates the permitting process for E&P at sea (Ordinance

422/2011)

Brazilian Institute for Environment and Renewable Resources (IBAMA)

• Permitting process and issuance of permits according to the Ordinance 422/2011 of the MME

Pollution Control Project• Guidelines for presentation of reports

Guidelines for approval of OSRPs for exploration and production activities

National Environmental Council (CONAMA)

• Classification of water bodies and standards for discharges of effluents

• Standards for the discharge of produced water in production facilities

• Use of chemical dispersants regulations

• Minimum content of the Oil Spill Response Plan standards

National Agency of Petroleum, Natural Gas and Biofuels (ANP)

• Operational Safety Regime System (SGSO) for drilling and production installations

• Communication of incidents procedures Regulations for Operational Safety for Subsea Systems (SGSS)

• Abandonment of drilled wells procedures

• Deactivation of facilities and conditions for return of concession areas in the production phase procedures

Brazilian Institute of Metrology, Quality and Technology (Inmetro)

• Joint resolution with ANP establishing conditions for metering systems in production facilities

Directorate of Ports and Coasts (DPC) • Maritime Authority Norms (Normam)

Ministry of labor and Employment (MTE)• Occupational Safety and Health Regulations (Normas

Regulamentadoras)

National Agency for Sanitary Vigilance (ANVISA) • Regulations regarding health aspects at facilities

Appendix A

Colombia continued on page 63


Appendix A

Ministerio de Minas y Energia (MinMinas)• Governs mining and energy including hydrocarbons:

measures for hydrocarbon exploration and exploitation (Resolution 181495)

Direccion General Maritima (DIMAR)• Administers activity in Colombian waters (part of Ministry of

Defense)

Instituto Colombiano de Desarrollo Rural (INCODER]

• Ensures that ethnic and minority populations interests are protected through regulation

Instituto Colombiano de Antropologia e Historia (ICANH]

• Protects national patrimony, history and anthropological sites

Cote d’Ivoire Agencies Agency Role and Key Laws

Ministry of Environment

• Guidance on Sustainable Development (Law 2014-390)

• Water Code (Law 98-755)

• Environmental Code (Law 96-766)

• Organization of the Emergency Plan to Protect Marine, Coastal and Lagoon Waters from Pollution (Decree 98-42)

• Protection of the marine environment and lagoons against pollution (Decree 98-678)

Ministry of Hydrocarbon

• Petroleum Code (Law 96-669) and amendments

• Exclusion Zone and Safety around Drill Ships, Research Vessels, Oil and Gas Production and Seismic Vessels (Decree 2013-851)

Ministry of Labor, Public Service and Social Welfare • Labor Code (Law 95-15 and amendments)

Ministry of Public Health• Protection of public health and the environment against the

effects of toxic industrial and nuclear waste and harmful substances (Law 88-651)

Agence National de l’Environnement (ANDE)• Environmental auditing (Decree 2005-03)

• Rules and Procedures Applicable to Environmental Impact Studies for Development Projects (Decree 96-894)

Ministry of Transport• Regulations relating to the policing of the Port of Abidjan

(Decree 99-318)

• Operating rules of the Port of Abidjan (Decree 0082)

Centre Ivoirien Antipollution (CIAPOL)

• Classified installations for the protection of the environment (Decree n°98-43)

• Discharges and emissions from classified facilities for environmental protection regulations

Ministry of Interior • ORSEC Plan (Emergency Plan)

Colombia continued from page 62



Kenya Agencies Agency Role and Key Laws

Ministry of Energy and Petroleum

• Petroleum Bill (exploration development and production) (2015)

• Energy Bill (2015)

• Energy Regulation (local content) (2014)

National Environment Management Authority (NEMA)

• Natural Resources Bill (benefit sharing) (2014)

• Climate Change Bill (2014)

• Environmental Management and Coordination Bill (2014)

Kenya Maritime Authority • Prevention and Control of Marine Pollution Bill (2014)

Agriculture, Fisheries and Food Authority • Agriculture, Fisheries and Food Authority Act (2013)

• Fisheries Management and Development Bill (2014)

Kenya Wildlife Services • Wildlife Conservation and Management Act (2013)

Appendix A

Mozambique continued on page 65

Mozambique Agencies Agency Role and Key Laws

Ministry of Land, Environment and Rural Development (MITADER)

• Responsible for areas of administration and land management and geomatics, forests and wildlife, environment, conservation and rural development

• Land Law (Law No. 19 of 1997)

• Environmental Law (Law no. 20/97 of 1 October)

• Environmental Regulations for Petroleum Operations (Decree no. 56/2010 of 22 November)

• Regulation on the Resettlement Process resulting from Economic Activities (Decree no. 31/2012 of 8 August)

• Regulation on the Process for EIA (Decree no. 45/2004 of 29 September)

• Regulation on the Process of Environmental Audit (Decree no. 25/2011 of 15 June)

Ministry of Mineral Resources and Energy (MIREME)

• Responsible for directing and implementing policies in the context of geological research, the inventory of and exploration for mineral resources including coal and hydrocarbons

• Petroleum Law (Law no. 21/2014 of 18 August)

• Regulation for Installation and Licensing of Petroleum Activities (Decree No. 272 of 2009)

• Decree Law that establishes the special legal and contractual regime applicable to the LNG Project in Areas 1 and 4 of the Rovuma Basin (Decree Law no. 2/2014 of 2 December)

Ministry of Public Works, Housing and Water Resources

• Responsible for policy and management of public works, housing and water resources

Ministry of Labour, Employment and Social Security • Labor Law (Law 23/2007 of August, 2015)

National Petroleum Institute (INP) • Petroleum Law (Law no. 21/2014 of 18 August, 2015)


Appendix A

Mozambique continued from page 64

National Roads Administration (ANE)• Public institution responsible for the development and

maintenance of all roads throughout Mozambique

ARA Norte • Responsible for Regional Administration of Water Resources

New Zealand Agencies Agency Role and Key Laws

Environmental Protection Agency • Economic Exclusion Zone and Continental Shelf Act

Maritime New Zealand • Maritime Transport Act (1994)

Department of Conservation• Code for minimizing acoustic disturbance to marine

mammals from seismic surveys

New Zealand Petroleum and Minerals

• Crown Minerals Regulation (royalties for petroleum) (2013)

• Crown Minerals Regulations (petroleum reporting) (2007)

• Crown Minerals (petroleum fees) Regulations (2006)

WorkSafe• Health and Safety in Employment Act 1992

• Health and Safety at Work regulations (petroleum) (2015)

Ministry for Primary Industries (MPI) • Biosecurity

Ministry for the Environment • Economic Exclusion Zone and Continental Shelf Act

Ministry of Business Innovation and Employment (MBIE)

• Health and Safety at Work (Petroleum) Regulations (2015)

CONFIDENTIAL

Documents

ANADARKO2016 HSE and Sustainability Overview 5 Introduction Anadarko’s HSE and sustainability activities support the Company’s Core Values. The following are just a few examples