Shell Scotford 2012 Community Survey Results

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1 Shell Scotford Community Survey Results

2 SHELL SCOTFORD Community Survey Results Community Survey Results In spring, an independent research firm conducted a community perception survey on behalf of Shell Scotford. Professional interviewers contacted 300 randomly selected people in the region via telephone. This report discusses the results of the survey and shares more information about our operations and current events. This marks our third community survey, with the first one conducted in 2008 and the second in The results from both of the previous surveys are included in this report. These snapshots in time help us better understand what the pressing issues are in the community and how we can improve as a neighbour. In fact, the findings in each survey helped drive a number of new initiatives over the years. We thank the residents who took the time to give us feedback. Shell believes that by working together and engaging in open and transparent dialogue with our neighbours, we can continue to build a great community for all. What s on Your Mind? What are the key issues facing the community that are important to you? Environment 16% 11% 10% Health 4% 3% 10% Community safety 7% 6% 8% Infrastructure 8% 9% 7% Traffic 7% 11% 4% Housing 6% 6% 4% Pollution/Air quality 14% 3% 4% Growth/Control growth 19% 4% 0% All others less than 3% 1

3 Scotford as a Responsible Operator Protecting the Health and Safety of Residents 55% 76% 77% How good a job do you feel Shell Scotford is doing on ensuring safe operations to protect the health and safety of residents? OUR COMMITMENT TO HEALTH AND SAFETY There are a number of policies we use that help ensure we operate responsibly. Shell operations are guided by our health, safety, security, and environment policy -- a commitment that includes: Goal of no harm to people Protect the environment 30% 15% 16% 8% 14% 9% Publicly report on our performance Play a leading role in promoting best practice in our industries Promote a culture in which all Shell employees share this commitment 2

4 SHELL SCOTFORD Community Survey Results Minimising Noise, Odours and Flaring from Plant Operations 52% 32% 16% 72% 18% 10% 68% 20% 12% How good a job do you feel Shell Scotford is doing on minimising noise, odours and flaring from plant operations? STARTUP SUCCESS A key operational milestone for Shell Scotford in 2011 was the start-up of our 100,000 barrel per day expansion to our Upgrader facility. In addition to excellent personal safety performance, the commissioning of these expanded facilities was completed with no process safety incidents. The commissioning and start-up team worked diligently to minimise flaring during the start-up process and managed noise-intensive activity to minimise disruption to the local community. Proactive communication and consistent updates ensured our community members were aware of activities and allowed us to address any concerns that were raised. 3

5 SCOTFORD AS A RESPONSIBLE OPERATOR Protecting the Environment 50% 32% 18% 71% 17% 12% 74% 15% 11% How good a job do you feel Shell Scotford is doing on ensuring safe operations to protect the environment? IMPROVING OPERATIONS Off-Gas Processing Reduces Shell s Carbon Footprint An agreement to send gas by-products from the Scotford Refinery to Aux Sable s new Heartland Offgas Plant has cut refinery carbon emissions. In the first year of the agreement, CO 2 emissions from the refinery dropped by approximately 125,000 tonnes. That s equal to taking about 25,000 cars off the road, said Barry Klein, Scotford Manufacturing general manager, adding the deal between Shell and Aux Sable will see that kind of positive environmental impact annually. Offgas is a waste by-product of the refining process that has little commercial value. Refineries often use these gasses to fuel their furnaces in their processing units. By sending the offgas to Aux Sable s plant and replacing it with cleaner burning natural gas, Shell is able to significantly reduce its greenhouse gas emissions. This is what makes this type of partnership so important, said Klein. We are always looking to make improvements to our operations, and this project only inspires us to look for new ways to become more efficient. OUR COMMITMENT TO RESPONSIBLE OPERATIONS Shell Scotford is committed to responsible operations and continuously looks for ways to improve our performance. We use audits, operating standards and structured work processes to help protect the health and safety of people and ensure our operational reliability. Responsible Care Scotford Chemicals is verified by Responsible Care, a global chemical industry performance initiative of the Chemistry Association of Canada (CIAC) that helps member companies continuously improve in the critical areas of health, safety, security, product stewardship, environmental protection and social responsibility. International Standards Shell Scotford is ISO 9001:2008 and ISO 14001:2004 certified. ISO 9001:2008 addresses quality management, which deals with both customer quality requirements and regulatory requirements. ISO 14001:2004 addresses environmental management, which deals with what the organisation does to minimise harmful effects on the environment caused by its activities. Audits We use both internal and external (3rd party) audits to help ensure our systems and practices are robust. Internal audits are conducted by employees from other Shell locations around the world to assess our health and safety management systems. Management Systems & Work Processes Managing our operating processes effectively is key to safe and reliable operations. Shell places importance on ensuring our management systems and operating processes work as intended. This includes continuous process monitoring and effectiveness reviews, strong training and competency programs for staff, and applying any relevant lessons learned from other industrial locations. 4

6 SHELL SCOTFORD Community Survey Results Scotford as an Employer As a global energy company, we set high standards of performance and ethical behaviours. We are judged by how we act our reputation is upheld by how we live up to our core values; honesty, integrity and respect for people. Shell Scotford is a large facility with a complex project schedule that sees the demand for contract workers fluctuate throughout the year. There is always an increase in the number of workers on site during major maintenance activities (known as turnarounds), which are conducted annually. The survey results make it clear that residents see the importance of Scotford in providing jobs for the region. Shell also recognises the importance of building the workforce for tomorrow and works closely with local institutions like NAIT and the University of Alberta. Every year, Shell provides numerous work opportunities for co-op students, practicum and new graduates to start their career in an exciting and dynamic career. 5

7 SCOTFORD AS AN EMPLOYER Providing Jobs for Local Residents How good a job do you feel Shell Scotford is doing on providing jobs for local residents? DID YOU KNOW... 81% 83% 84% Shell is the largest industrial employer in Alberta s Industrial Heartland. Shell Scotford employs nearly 1,400 full-time staff along with approximately 800 long-term contractors. In addition, thousands more are employed throughout the year due to various short-term contractual work. 12% 12% 7% 5% 9% 7% With an ongoing need for tradespeople to support maintenance activities and the new projects underway, such as the recently announced Quest CCS project, there is always a need for skilled talent to support our operations. Interested in working at Shell? Check out job opportunities at shell.ca Contracting with Local Businesses How good a job do you feel Shell Scotford is doing on contracting with local businesses? YOU TOLD US... 53% 52% 13% 12% 34% 36% 55% 10% 35% Thank you for employing my neighbours and the residents of Fort Saskatchewan. 6

8 SHELL SCOTFORD Community Survey Results Scotford in the Community While remaining a responsible operator is Shell s first obligation to the community, we also place significant importance on our social investment and leadership as a good corporate citizen within the local region. Through donations, sponsorships, time volunteered by employees, partnerships with local organisations and leadership with industry associations, Scotford plays an active role in the community. YOU TOLD US... It is very nice to see the amount of community involvement from Shell. 7

9 SCOTFORD IN THE COMMUNITY Paying a Fair Share of Taxes IN 2011, SHELL SCOTFORD SPENT: 44% 54% 54% How good a job do you feel Shell Scotford is doing on paying its fair share of taxes? $50 MILLION PROPERTY TAXES (STRATHCONA COUNTY) 17% 9% 39% 37% 12% 34% $275 MILLION GOODS AND SERVICES $205 MILLION PAYROLL (EMPLOYEES, EXCLUDES CONTRACTORS) Volunteering by Employees in the Community How good a job do you feel Shell Scotford is doing on volunteering by employees in the community? 60% 59% 13% 27% 9% 32% Shell is proud to be the sponsor of the Josephburg Chicken Supper. Our participation goes beyond the sponsorship, however; as about 40 Shell employees volunteer at the event every year

10 SHELL SCOTFORD Community Survey Results SHELL SCOTFORD IS PROUD TO PLAY AN ACTIVE ROLE IN THE COMMUNITY. HERE ARE A FEW OF THE COMMUNITY INVESTMENTS SHELL HAS MADE IN THE PAST FEW YEARS: In, Shell contributed $350,000 toward a Skills Maintenance Outdoor Training Centre in Strathcona County that will help local emergency responders learn and maintain life-saving skills. In 2010, Shell donated $750,000 to the Fort Saskatchewan Hospital Foundation to be used towards the purchase of a CT scanner and the creation of the Shell Healing Garden. Shell donated $300,000 in 2010 to fund a bookmobile that connects rural Strathcona County residents with the library in Sherwood Park. In 2011, Shell Scotford announced a $60,000 agreement to plant trees over three years at Ball Island in Sherwood Park. Shell volunteers help to plant the trees and shrubs. When Shell Scotford Emergency Services retired a foam truck in 2011, it was donated to Thorhild County. The truck now has a new lease on life and is an important piece of equipment for Thorhild County Emergency Services. 9

11 SCOTFORD IN THE COMMUNITY Providing Leadership in the Community 51% 63% 66% How good a job do you feel Shell Scotford is doing on providing leadership in the community? SHELL PROVIDING LEADERSHIP We help provide leadership in the community through active participation in and support to organisations that touch issues of importance to the community: Northeast Capital Industrial Association (NCIA) 24% 18% 12% Northeast Region Community Awareness Emergency Response (NR CAER) Fort Air Partnership (FAP) Alberta s Industrial Heartland Land Trust Society 25% 19% 22% Supporting Local Organisations SHELL SUPPORTING ORGANISATIONS 60% 73% 79% How good a job do you feel Shell Scotford is doing on supporting local organisations such as schools, hospitals, social service organisations? Shell Scotford is active in supporting local organisations and programs. Some of the programs we support include: Strathcona County Library s Bookmobile Josephburg Chicken Supper Shell Edutainment Centre at Millennium Place Fort Saskatchewan Library Fort Saskatchewan Community Hospital Strathcona County Reduction of Abandoned Products (SCRAP) 18% 11% 22% 16% 9% 12% Shell Theatre (Fort Saskatchewan) Tree Canada Spring Creek Wetlands Restoration and Interpretive Centre in Bruderheim Plus hundreds of other local community organisations through our Community Service Fund, which grants $1,000 to organisations where Shell employees volunteer. For more info, go to shell.ca/csf 10

12 SHELL SCOTFORD Community Survey Results Scotford as a Communicator Shell Scotford believes it is important to talk to the community about our operations. We also recognise that we need to listen to our neighbours feedback. We strive to have clear and open dialogue with all of our stakeholders. To keep the community informed about any unusual operational activity, we use the Northeast Region Community Awareness Emergency Response (NR CAER) UPDATEline. If you see, smell or hear anything unusual from our site (or any industry in the area), call the UPDATEline ( ) to hear messages posted 24 hours a day, seven days a week. Should an emergency arise where Shell Scotford needs to contact neighbours within our emergency planning zone (approximately a five km radius around Shell Scotford), we would do so through an automated call-out. Shell Scotford conducts a live test of its call-out system annually to ensure the system is ready when needed. 11

13 Being Responsive to Concerns & Questions Communicating Openly with the Community 51% 63% 66% How good a job do you feel Shell Scotford is doing on being responsive to concerns and questions from residents of the community? 52% 66% 69% How good a job do you feel Shell Scotford is doing on communicating openly with the community? 28% 21% 22% 15% 15% 19% 32% 16% 22% 12% 21% 10% Being Accessible to Residents ENGAGING OUR COMMUNITY 49% 62% 57% How good a job do you feel Shell Scotford is doing on being accessible to residents? Shell Scotford is active in communicating with our community. Here are some of the ways you can get involved in the dialogue: Community Connections newsletter (quarterly) Community meetings (bi-annual) Fort Saskatchewan Trade Show (annual) Local events in surrounding communities Quest open houses 26% 25% 20% 18% 17% 26% NR CAER UPDATEline for unusual activity ( ) Webpage (shell.ca) If you want to talk to someone directly, feel free to contact any of the individuals identified on the back cover of this report. 12

14 SHELL SCOTFORD Community Survey Results Scotford as a Good Neighbour Being a good neighbour and a valued member of the community is a priority for Shell. We believe it is important to share our time, resources and expertise with the community. In addition to taking part in a host of local community events, Shell Scotford aims to be accessible to neighbours and local communities through community meetings, municipal council updates, or simply picking up the phone when a community member calls with a question or concern. Maintaining good relationships and open lines of communication is a key priority for Shell. 13

15 SCOTFORD AS A GOOD NEIGHBOUR A Valuable Member of the Community Being a Good Neighbour 78% 89% 91% Shell Scotford is a valuable member of the community? 65% 81% 84% How good a job do you feel Shell Scotford is doing on being a good neighbour for your community? 11% 11% 8% 6% Agree Disagree Neither 27% 15% 8% 4% 12% 4% Benefit to the Quality of Life in the Community 52% Extent to which Shell Scotford benefits the overall quality of life in the community? EMPLOYEES MAKE A DIFFERENCE Shell supports the contributions of time and money that our employees make in their community through two key areas: the Shell Community Service Fund and United Way. 13% 35% 69% 7% 24% 77% 5% 18% Better Worse About the Same The volunteer efforts of employees are recognised and rewarded by the Shell Community Service Fund (CSF), which provides grants of up to $1,000 to support not-for-profit organisations where Shell people regularly volunteer. In 2011, $74,748 was distributed to local not-for-profit organisations through the CSF. Shell matches the dollars that employees raise for the United Way. In 2011, the Shell match added $122,970 to the Scotford United Way campaign that raised a total of $244,076 for the United Way. 14

16 SHELL SCOTFORD Community Survey Results Quest Carbon Capture and Storage (CCS) Finding ways to manage greenhouse gas emissions from fossil fuels is one of the most important challenges facing society. There is no single solution, but a technology called carbon capture and storage (CCS) has been identified as one of the most promising technologies that we can implement today to significantly reduce global CO 2 emissions. CCS is a technology that captures CO 2 from large industrial facilities so that it does not enter the atmosphere and injects it deep underground. In September, Shell announced that it was proceeding to construct the first carbon capture and storage project in the world for an oil sands operation. The Quest project is being advanced on behalf of the Athabasca Oil Sands Project, a joint venture among Shell Canada Energy (60 per cent), Chevron Canada Limited (20 per cent) and Marathon Oil Canada Corporation (20 per cent). When it starts up in 2015, Quest will capture and store underground more than one million tonnes of CO 2 per year from the Scotford Upgrader. Using Shell s patented amine capture technology, Quest will capture up to 35 per cent of the direct CO 2 emissions produced during the upgrading process. The amount of CO 2 that will be captured and stored is the equivalent to taking 175,000 vehicles off the road. The CO 2 will be compressed and transported in a dense liquid state by an approximately 80 km pipeline to 3 8 injection wells located north of the Upgrader. The CO 2 will then be injected and permanently and safely stored more than two kilometres underground -- sealed under multiple layers of impermeable geological formations. This is up to two kilometres beyond the deepest drinkable groundwater and about one kilometre below the deepest hydrocarbon deposits in the area. To confirm that the CO 2 remains safely and permanently contained, Shell is developing a rigorous, world-class Measurement, Monitoring and Verification program that will involve multiple monitoring technologies. Shell has undertaken a comprehensive consultation program in support of the Quest project over the last four years. Besides meeting individually with landowners along the pipeline right-ofway, Shell also held a number of sessions that were open to the public. Since 2008, there have been 16 open house information meetings in the local area and two Quest workshop sessions for invited stakeholders and community leaders. Shell is now in the process of establishing a community advisory panel of local leaders and stakeholders to regularly review data from the Measurement, Monitoring and Verification program. Shell has held 16 open house sessions on Quest since 2008 and is now in the process of setting up a community advisory panel for the project. Carbon capture at Scotford. CO Scotford Upgrader Amine Unit & Compressor 2 and hydrogen from the hydrogen unit will be sent to the Amine unit where the CO 2 is separated. The CO 2 is then compressed and sent to the pipleine. CO 2 H AMINE UNIT Hydrogen Unit 1 H 2 CO 2 CO 2 CAPTURE AT SHELL SCOTFORD COMPRESSOR Carbon capture & storage (CCS) is critical to meeting the huge projected increase in global energy demand while reducing CO 2 emissions. If you want to achieve climate change goals, CCS has to be part of the solution. Peter Voser, Chief Executive Officer of Royal Dutch Shell plc 4 15

17 PUTTING CO 2 BACK WHERE IT CAME FROM CO 2 is a greenhouse gas that is emitted from natural sources like volcanoes and geysers, as well as by decaying animal and vegetable matter GHG EMISSIONS PROFILE AND MITIGATION OPTIONS CANADA It is also created by people when we burn fossil fuels our main sources of energy today and for decades to come until we can transition to a lower carbon future. There is broad consensus that too much CO 2 in the atmosphere, caused by human activity, is causing global warming and changing our climate. The challenge is how to meet growing energy demand while bringing CO 2 emissions down fast. The solution is a combination of energy efficiency, renewable energy and CCS. G H G E M I S S I O N S ( M t C O 2 e ) ENERGY EFFICIENCY CCS ENERGY PENALTY CARBON CAPTURE & STORAGE FUEL SWITCHING TO ELECTRICITY FUEL SWITCHING TO RENEWABLES OTHER GHG CONTROLS REMAINING EMISSIONS Carbon capture & storage will be an important measure in helping Canada reduce its CO 2 emissions. SOURCE: NRTEE ACHIEVING 2050: A CARBON POLICY FOR CANADA, Up here, too much CO 2 is a problem Deep down there, We have a solution 16

18 SHELL SCOTFORD Community Survey Results About Shell Scotford There are three facilities that make up Shell Scotford: an Upgrader, a Refinery, and a Chemicals plant. The Upgrader expansion became operational in 2011, which brings the Upgrader design capacity total to 255,000 barrels per day. Manufacturing at Scotford Shell has more that 100 years of operation in Canada. In 1984, Shell opened a refinery and chemical plant on the Scotford site. As one of North America s most modern and efficient refineries, the Scotford Refinery was the first to exclusively process synthetic crude oil from Alberta s oil sands. The Refinery produces 100,000 barrels per day of products such as diesel, gasoline, jet fuel and propane. Benezene, a product from the refining process, is sent to Scotford Chemicals for use in the production of styrene monomer a chemical needed to make many products that people use daily. In 2000, a glycols plant was also opened at Scotford. Glycol is an important chemical that is used in the production of plastic drink containers and antifreeze. The Athabasca Oil Sands Project In 2003, Shell opened the Scotford Upgrader to process bitumen from Shell Albian Sands as part of the Athabasca Oil Sands Project (a joint venture between Shell, Chevron, and Marathon Oil). At full production, its 255,000 barrels per day production capacity is the equivalent of 10 per cent of Canada s oil needs. The Scotford Upgrader takes bitumen from Shell Albian Sands north of Fort McMurray and, using a hydrogen-addition process, upgrades it to a light sweet crude oil. The Upgrader is equipped with a hydrogen-manufacturing unit, which produces most of the hydrogen required for the hydrogen-addition process. Much of the crude produced at the Upgrader is sold to the Scotford Refinery. 17

19 THE FUTURE OF ENERGY STARTS HERE Shell Albian Sands Scotford Upgrader Accessing Alberta s oil reserves can be challenging. Shell is committed to doing so responsibly so we can meet the world s energy needs. Scotford Chemicals Scotford Refinery 18

20 Shell Scotford Contact Information Arnel Santos, General Manager, Scotford Upgrader Barry Klein, General Manager, Scotford Manufacturing (Refinery and Chemicals) Tanya Ristoff, Communications Advisor, Scotford Upgrader Stephen Velthuizen, Communications Advisor, Scotford Manufacturing Jenn Downs, Community Affairs Representative, Shell Scotford For 24-hour info on site activity, NR CAER UPDATEline:

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