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How To Use It

1

Final Tool Version

March 2012

The GEMI Local Water Tool™ (LWT) for Oil and Gas is a free tool made by

a group of 40+ global companies to help them and other companies identify

the external impacts, business risks, and opportunities related to water use

and discharge at a specific site or operation. The information generated in

the Local Water Tool may be used by companies for developing management

plans and communicating outcomes at their discretion.

About GEMI and Antitrust Guidelines

Goals of the GEMI Local Water Tool™ for Oil and Gas

Participants

Background

Module Framework

• Home

• Module 1: Site Data

• Module 2: Local External Conditions

• Module 3: External Impact Assessment

• Module 4: Risk Assessment

• Module 5: Management Plan

• Module 6: Reporting

• References

Agenda

2

Vision:

“GEMI is a global leader in developing

insights and creating environmental

sustainability solutions for business.”

Mission:

“Business helping business achieve

environmental sustainability excellence”

GEMI Values

3

Current GEMI Members

4

http://phx.corporate-ir.net/phoenix.zhtml?c=140690&p=irol-index

http://www.biogenidec.com/

Water Sustainability

Climate Change & Energy

Supply Chain

Sustainable Development & Emerging Issues

Communications Professionals

GEMI Signature Issues

5

Help oil and gas companies assess impacts,

risks, opportunities and manage water-related

issues at specific sites.

Provide a common and consistent “visualization

platform” for internal and external

communication.

Provide interconnectivity between global and

local water risk assessments and a uniform

approach between site assessments.

Create a central repository of information to

create reports for multiple water questionnaires.

Goals of GEMI Local Water Tool™ for Oil and Gas

6

The GEMI Local Water Tool™ for Oil and Gas:

Includes Influent Source category for “Owned Produced

Water”

Includes Effluent Discharge Point for “Reinjection for

Production”

Includes an External Stress Severity Issue on Growth of

Oil and Gas Industry in Area

Extracts data from the IPIECA Global Water Tool for Oil

and Gas

Includes IPIECA Reporting Metrics and Total Petroleum

Hydrocarbons (TPH) Quality Parameters

How is the LWT for Oil and Gas different

from the LWT for General Industry?

7

Blue notes are

unique to LWT

for Oil and Gas

GEMI Members & GEMI LWT™

Project Participants

GEMI Member Companies: GEMI LWT™ Project Participants:

8

Tool Developer:

http://phx.corporate-ir.net/phoenix.zhtml?c=140690&p=irol-index

http://www.biogenidec.com/

During the course of the project, members of a GEMI-NGO External Advisory Group (EAG) shared their

insights into aspects of the GEMI LWT™ during a workshop and live demo of the tool and had the

opportunity to pilot the draft tool and provide feedback and suggestions for GEMI’s consideration to

incorporate into the final tool. The following people participated in the EAG workshop and/or reviewed and

commented on the contents of the GEMI LWT™:

Jason Morrison, Alliance for Water Stewardship (AWS) and CEO Water Mandate

Marcus Norton, Carbon Disclosure Project (CDP) Water

Marielle Canter Weikel, Conservation International

Sabine von Wirén-Lehr, European Water Partnership (EWP)

Ruth Romer, as International Petroleum Industry Environmental Conservation Association (IPIECA)

Julie van der Bliele, International Water Management Institute (IWMI)

Susan Fernandes, U.S. Business Council for Sustainable Development (USBCSD)

Kathy Baczko, WASH Advocacy Initiative

Anne-Leonore Boffi, World Business Council for Sustainable Development (WBCSD)

Volaine Berger, WBCSD

Tien Shiao, World Resources Institute, (WRI)

Rob Kimball, WRI

Alexis Morgan, World Wildlife Fund (WWF) / Alliance for Water Stewardship (AWS)

Nicole Tanner, WWF / AWS

Christopher Williams, WWF

GEMI-NGO External Advisory Group

(EAG)

9

Business Water Risk and Modeling Tools: 3 Levels of Assessment

10

1. Global Risk

Assessment of Portfolios

2. Local Risk Assessment

of Specific Site

3. Detailed Water

Modeling of Specific Site

• How many sites are in

extremely water scarce areas?

• Which sites are in greatest risk

areas?

• How many employees live in

countries that lack access to

water supply or sanitation?

• What are the water risks at this

site:

• Physical supply

• Regulatory

• Social

• Competition

• Climate variability

• Which risks are greatest?

• What is our management plan?

Designed to answer questions at different levels:

• What is optimum water

balance between process

streams?

• Which month has the

greatest stress?

• What % of river water flow

is used?

The GEMI LWT™ was developed in cooperation with the WBCSD and its

Global Water Tool.

The GEMI LWT™ for Oil and Gas was developed in cooperation with the

IPIECA and its Global Water Tool for Oil and Gas.

The tools are mutually compatible and a provider of best practices for

sustainable water management at the global, regional, national and local

levels.

Supporting nomenclature, data continuity and software system were

developed to be compatible between the GEMI, WBCSD and IPIECA tools to

ensure the User’s ability to transfer data between the tools.

References and web links to the respective tools are posted on the three

organization’s web sites.

The GEMI, WBCSD and IPIECA water tools are intended for free use by the

public and are posted in the public domain.

Synergy and Compatibility of Tools

11

http://www.gemi.org/

http://www.wbcsd.org/

http://www.ipieca.org/

When a Company has a global portfolio risk

assessment – what happens next?

WBCSD Global Water Tool:

One MS Excel File for Portfolio

GEMI Local Water Tool™:

One MS Excel File per Site

Specific site internal & external

data is transferred to the new

GEMI Local Water Tool™ MS

Excel files for detailed

assessment

Site A

Site B

Site C

Site D

12

IPIECA Global Water Tool for Oil and Gas:

One MS Excel File for Portfolio

GEMI Local Water Tool™

for Oil and Gas:

One MS Excel File per Site

Global portfolio water metrics and

high level risk assessment

Outcomes of Global Water

Tool (GWT)

13

14

Specific Risks

Opportunities

Tool Outcomes - Overall

Specific Impacts

Identify and rank:

Management Plans

Site-Level Metrics

For each Water

Source or

Discharge Point

Specific Impact

or Risk Issue

Impacts and

Risks with

Levels 0-9

Document:

Calculate:

15

Tool Outcomes – Management Plans

Links Risks and Impacts to Management Plans:

Business Risks External Impacts

Management Plan and

Opportunity Information

The GEMI LWT™ is valuable for an

operation or planned project that has one

or more of the following traits:

– Relies on water input(s) for operation

– Requires effluent discharge for operation

– Has a significant number of staff in one location

Top priority can be given to sites in water

stressed or environmentally sensitive

areas (may be identified through the GWT

or other data source)

GEMI LWT™ Site Candidates

16

Refinery Case Example

17

Tool showed specific

high risks:

Local ecosystems under

stress from other larger

users in the area

Cumulative demand in

area would soon exceed

local supply

Increasing community

public concern on the

refinery’s water use

While this refinery has closed loop

cooling and has reduced water

usage, it still faces external risks.

After using the LWT, the refinery took

action to address each risk:

• Increased external communication on

water efficiency

• Investigated the use of recycled

municipal effluent or hybrid dry cooling

18

Impact

Organizations with few water impacts

may face many water-related risks.

Local Communities

Site

Operations

Extent to which the

volume and/or quality

of water used or

discharged by an

organization in a

specific watershed

affects the availability

of that water for other

uses or harms

human health or

ecosystems in any

other way.

Local Watershed

Risk

Potential business

liabilities faced by

site as a result of

impacts and external

water-related drivers

and constraints.

Opportunity

Potential top line

business

enhancements

created by voluntary

sustainable water

management actions.

Key Definitions

Module Framework

19

Introduction and Home

1. Site Data

(User enters internal company data and defines the Internal Importance Level of Influent Sources and

Receiving Waterbodies/Entities)

2. Local External Conditions (User reviews external data to define External Stress Severity Levels for 20 Water Issues)

3. External Impacts Assessment (A site’s external impacts on Influent Sources and Receiving Waterbodies/Entities are identified and

ranked)

4. Risk Assessment (The external risks to the site are identified and ranked)

5. Management Plan (User identifies Current Management Methods, Opportunities, Assesses Sufficiency and Plans for Future)

6. Reporting and Summary Dashboard (Metrics are generated for GRI, Dow Jones, CDP Water, Bloomberg, IPIECA)

References, FAQ, Definitions

Home: Become Familiar with

Modules and Worksheets

20

HOME

MODULE 1:

SITE DATA

MODULE 2:

LOCAL

EXTERNAL

CONDITIONS

MODULE 3:

EXTERNAL

IMPACT

ASSESSMENT

MODULE 4:

RISK

ASSESSMENT

MODULE 5:

MANAGEMENT

PLAN

MODULE 6:

REPORTING

REFERENCES

Home: It is critical to read the

Instructions

21

Instructions

may be easily

downloaded or

printed from the

embedded

document

22

Optional:

Add your

own site

map

Map is

automatically

generated

Step 1: Enter location on SITE MAP

Choose

Operation Type

Optional step: GWT Users may

import data from IPIECA GWT

23

Data may be imported from the User’s IPIECA Global Water Tool file to this

worksheet. Data is not transferred to Module 1 because the stream categories

are slightly different. The User must populate the Module 1 Influent and Effluent

worksheets.

Note that only

the IPIECA GWT

for Oil and Gas

can be linked

with the LWT for

Oil and Gas

24

Please choose the data entry option carefully. Note that once you select a data

entry option, enter your water source and discharge point names and click on

“Run Module Setup”, then all of the fields in Modules 2 through 6 are created. If

you decide to change your data entry option or add or remove water sources or

discharge point names, then you must click again on “Run Module Setup” and

your previously entered data in Modules 2 – 6 will be erased.

Step 2: Setup: User selects data

entry option

Click OK when

you are certain

of your data

entry method

The Site Name must

be exactly the same

in both files for the

data extraction to

occur

25

Site

Operations

In Module 1, the User enters influent and effluent information about the

specific site within the fenceline of their operations. Internal metrics such

as consumption and intensities are calculated.

An Internal Importance Level is a key output from Module 1. The Internal

Importance Level describes the business criticality of each Influent Source

and Receiving Waterbody or Entity.

Module 1: Site Data

26

Required Data: User enters

name and volume quantity data

for influent and effluent streams

Optional Data: User enters

quality data for influent and

effluent streams

Produced Water

is included

Module 1: Enter Influent and

Effluent Data

27

Two different water sources

can be used in each category Note that Influent and Effluent

streams are separated into

two categories: Freshwater

and Non-Freshwater.

Module 1: Enter Influent and

Effluent Data

Non-Freshwater

columns are to the right

28

Run Module

Setup

Please enter the water source and discharge point names carefully. Note

that once you select a data entry option, enter your water source and discharge

point names and click on “Run Module Setup”, then all of the fields in Modules 2

through 6 are created. If you decide to change your data entry option or add or

remove water sources or discharge points, then you must click again on “Run

Module Setup” and your previously entered data in Modules 2 – 6 will be erased.

Water data (flow, TDS, etc.) may be changed, but source or discharge names

may not.

After “Run Module Setup” is clicked, Module 1 Output and Modules 2-6 are created.

After data is entered, User clicks

“Run Module Setup”

29

User selects Internal

Importance Level

Preset Droplist

Definitions

Space for

comments

Link to Droplist

Definitions List

Note that 0 is an

option may be

selected for

produced water

or seawater in

some situations

Module 1: Site Output – User selects Internal Importance

Level for each Influent Source and Receiving

Waterbody/Entity

30

Full Definitions in support of

the Droplist Definitions

Button to go back to Module 1

Module 1: Droplist Definitions for

Internal Importance Level

External Stress Severity Levels are key outputs from Module 2. This describes the current

conditions of a specific Influent Source or Receiving Waterbody or Entity. The External Stress

Severity Level is selected by the User for specific issues on each water source or discharge point

through review of external data sources and by best professional judgment. The External Stress

Severity Level is a result of natural physical conditions and cumulative anthropogenic (human,

industry, agriculture) impacts. 31

Local Communities

Local Watershed

In Module 2, the User looks outside the fenceline of their operations and determines the

condition of each Influent Source and Receiving Waterbody or Entity by assessing water issues. Influent Source Receiving Waterbody

or Entity

Note that

Oil/Gas Industry

Growth is also

included

Module 2: Local External

Conditions

32

19 Influent Water

Issues are

grouped in 6

Categories

User Documents

Data and Source

used for Level

Selection

User Selects

External Stress

Severity Level

Preset

Definitions

Space for

comments

Module 2: Local External Conditions: Influent – User selects

External Stress Severity Level for 19 Water Issues

Note that 0 is an

option may be

selected for

produced water or

seawater in some

situations

33

18 Effluent Water

Issues are

grouped in 5

Categories

User Documents

Data and Source

used for Level

Selection

User Selects

External Stress

Severity Level

Preset Definitions

Module 2: Local External Conditions: Effluent –

User selects External Stress Severity Levels for 18

Water Issues

Note that 0 is an

option may be

selected for

produced water

or seawater in

some situations

34

Full Definitions in

support of the

Droplist Definitions

Definition of

each issue and

reference

Buttons to go back to Module 2

Note that 0 is an option may

be selected for produced

water or seawater in some

situations


21 External Stress Severity Issues

A company’s individual impact level on a particular Influent Source or Receiving Waterbody or

Entity is defined by applying a Magnitude of Company Contribution factor to the External Stress

Severity Level. In this manner, the Company’s relative contribution to the current condition of the

Influent Source or Receiving Waterbody or Entity can be accurately defined. This approach enables

identification and comparison of relative levels of impacts at the site level. 35

Impact

Local Communities

Site

Operations

Extent to which the volume

and/or quality of water used

or discharged by an

organization in a specific

watershed affects the

availability of that water for

other uses or harms human

health or ecosystems in

any other way.

Local Watershed

In Module 3, the User determines the impacts that their operations have on the external

condition of each Influent Source and Receiving Waterbody or Entity.

Impact Categories:

• Water Availability

•Overall

• Human needs

• Food supply

• Water Quality

• Local Ecosystems

Module 3: External Impact

Assessment

36

5 External

Impacts are

grouped in 3

Categories

External Stress

Severity Level is

Automatically filled

from Module 2

User selects

Magnitude of

Company

Contribution

Preset

Definitions

Space for

comments

External

Impact Level

is Calculated

Module 3: External Impacts on Influent Sources –

User selects Magnitude of Company Contribution

for 5 Water Impacts Link to Droplist

Definitions List

37

5 External

Impacts are

grouped in 3

Categories

External Stress

Severity Level is

Automatically filled

from Module 2

User selects the

Magnitude of

Company

Contribution

Preset

Definitions

Space for

comments

External

Impact Level

is Calculated

Module 3: External Impacts on Effluent Sources –

User selects Magnitude of Company Contribution

for 5 Water Impact Categories

38

Full Definitions in

support of the

Droplist Definitions

Definition of

each type of

impact

Buttons to go back to Module 3


Magnitude of Company Contribution

39

Company’s External Impact on Influent Source (0 - 9) =

External Stress Severity Level (0 - 3) X

Magnitude of Company’s Contribution to the External Stress (0 – 3)

For example:

• Sites are determined to have a high

external impact when they are a

relatively high user of water from an

influent source that has a high external

stress level on water availability.

• Sites are determined to have a low

external impact when they are a

relatively high user of water from an

influent source that has a low external

stress level on water availability.

High Water

User in Area

(3) High

External

Impact on

Availability

(9)

Low

External

Impact on

Availability

(3)

Water Source

in High Stress

- Availability

(3)

High Water

User in Area

(3)

Water Source

in Low Stress

- Availability

(1)

Module 3: Key Output: Company’s External Impact

Level for Each Issue – Influent Examples

40

Company’s External Impact on Influent Source (0 - 9) =



High Water

User in Area

(3) No

External

Impact on

Ecosystem

from

Produced

Water

Source

(0)

Water Source

in Zero Stress

– Local

Ecosystem

(0)


Level for Each Issue – Oil and Gas Influent

Example

For example:

• An oil production site generates

“produced water” along with oil from a

and underground reservoir and re-

injects if for pressure maintenance for

production. There is no ecosystem in an

underground reservoir so the Impact to

Ecosystems is zero.

Note that 0 is an

option and may

be selected for

produced water

or seawater in

some situations

41

Company’s External Impact on Receiving Waterbody/Entity (0 - 9) =



For example:


external impact when they have minimal

discharges to a Receiving

waterbody/Entity that has a high

external stress level on water quality.


external impact when they have

relatively high discharges to a

Receiving Body/Entity that has a high

external stress level on water quality.

Minimal

Discharger in

Area (1) Low

External

Impact on

Quality

(3)

High

External

Impact on

Quality

(9)

Receiving

Waterbody/Entity

in High Stress -

Quality (3)

Receiving

Waterbody/Entity

in High Stress -

Quality (3)

High

Discharger in

Area (3)


Level for Each Issue – Effluent Examples

42

Local Communities

Site

Operations

Local Watershed

In Module 4, the User determines the risks to their business operation from the external

conditions of each Influent Source and Receiving Waterbody or Entity.

Potential business


site as a result of



and constraints.

Risk

Company’s Risk on Specific Water Issues for Each Influent Source or Receiving

Waterbody/Entity (0-9) =

Internal Importance Level (0-3 from Module 1) X

External Stress Severity Level (0-3 Module 2)

Risk Categories:

• All 21 Water Issues

from Module 2

Module 4: Risk Assessment

43

Internal Importance

Level (0 – 3)

imported from

Module 1

External Stress

Severity Level (0 – 3)

imported from

Module 2

Automatic Calculation:

Company’s Risk Level =


X External Stress Severity

Level

Space for

comments

Module 4: Influent Risks are automatically

calculate from Module 1 and Module 2

44

Internal Importance

Level (0 – 3)

imported from

Module 1

External Stress

Severity Level (0 – 3)

imported from

Module 2

Automatic Calculation:

Company’s Risk Level =


X External Stress Severity

Level

Space for

comments

Module 4: Effluent Risks are automatically

calculate from Module 1 and Module 2

45

Company’s Risk from issues on Influent Source (0 - 9) =


Internal Importance Level of the Influent Source (0 – 3)

For example:


risk from water availability when that

source has high internal importance and

has a high external stress level on

water availability.


risk from water availability when that

source has high internal importance and

has a low external stress level on water

availability.

High Internal

Importance

Level (3) High Risk

on

Availability

(9)

Low Risk

on

Availability

(3)

Water Source

in High Stress

- Availability

(3)

Water Source

in Low Stress

- Availability

(1)

High Internal

Importance

Level (3)

Module 4: Key Output: Company’s Risk for Each

Issue – Influent Examples

46



Internal Importance Level of the Influent Source (0 – 3)

For example:


produced water along with oil from a

field but the company does not use it for

a beneficial purpose in its operations.

This site has no risk related to

availability because the water source is

not needed.

Zero Internal

Importance

Level (0)

Water Source

in Low Stress

- Availability

(1)


Issue – Oil and Gas Influent Example

Note that 0 is an

option and may

be selected for

produced water

or seawater in

some situations

No Risk on

Water

Availability

on the

Produced

Water

Source

because

(0)

47

Company’s Risk from issues on Receiving Waterbody/Entity(0 - 9) =


Internal Importance Level of the Receiving Waterbody/Entity (0 – 3)

For example:


risk from local ecosystems when that

Receiving Waterbody/Entity has high

internal importance and has a high

external stress level on local ecosystem

health.


risk from local ecosystems when that

Receiving Waterbody/Entity has high

internal importance and has low

external stress level on local ecosystem

health.

High Internal

Importance

Level (3)

High Risk

on

Ecosystem

Health

Limiting

Discharges

(9)

Low Risk

Ecosystem

Health

Limiting

Discharges

(3)

Receiving

Waterbody/Entity

in High Stress –

Local Ecosystem

(3)

High Internal

Importance

Level (3)

Receiving

Waterbody/Entity

in Low Stress –

Local Ecosystem

(1)


Issue – Effluent Examples

48



Internal Importance Level of the Receiving Waterbody/Entity (0 – 3)

For example:


produced water along with oil from a

field but the company does not use it for

a beneficial purpose. The site injects

the produced water into a saline aquifer

for disposal.

High Internal

Importance

Level (3)


Issue – Oil and Gas Effluent Example

Note that 0 is an

option may be

selected for

produced water

or seawater in

some situations

No

Ecosystem

Risk on

Water

Discharge

to Saline

Aquifer

(0)

Receiving

Waterbody/Entity

in Has No Stress

– Local

Ecosystem (0)

49

Local Communities

Site

Operations

Local Watershed

In Module 5, the Impacts and Risks are summarized. The User identifies Management Plans to

address the Impacts and Risks. Opportunities are identified.

Potential business


site as a result of



and constraints.

Risk

Extent to which the volume

and/or quality of water used

or discharged by a

organizations in a specific

watershed affects the

availability of that water for

other uses or harms human

health or ecosystems in

any other way.

Impact

Organizations with few water impacts

may face many water-related risks.

Opportunity

Potential top line

business

enhancements

created by voluntary

sustainable water

management actions.

Module 5: Management Plan

50

Business Risks (0-9)

imported from

Module 4

External Impacts

(0 – 9) imported

from Module 3

User enters Management

Plan Information

(see close up next page)


51


User can enter

Opportunity Information

in text boxes

The sufficiency of existing

Management Plans and the need for

new plans or actions may be

documented. Links to existing

documents may be included.

52

Water

Withdrawal

Metrics

Water

Discharge

Metrics

Water

Consumption

Metrics

Water

Recycled/

Reused

Metrics

Water

Intensity

Metrics by

Production

and

Revenue If you update numerical data or process names in the Module 1

Influent or Effluent Input Data sheets, then you must click “Run

Internal Metrics” to extract the revised information.

Module 6: Internal Metrics

GRI IPIECA DJSI

Bloomberg

53

CDP Water

If you update numerical data or process names in the Module 1 Influent or

Effluent Input Data sheets, then you must click “Run Reporting” to extract

the revised information.

Module 6: Reporting

After Modules 2-5 are completed,

click RUN DASHBOARD

54

RUN

DASHBOARD

creates the

summary

55

Specific Impact

or Risk Issue

Impacts and

Risks with

Levels 6-9

Module 6: Dashboard – Summary of

High (6-9) Level Impacts and Risks

For each Water

Source or

Discharge Point

56

The most credible and meaningful output from the GEMI LWT™ will be obtained

through use of the most credible and recent local data. Identification and selection of

local data are the User’s responsibility. Local data may sourced from public sources

(e.g. via the Internet) or from the site’s records. The Data Sources worksheet

provides links to global datasets that may be employed in the GEMI LWT™ if local

data sources cannot be identified. However, the User is encouraged to identify and

use local data sources rather than global sources.

References – Links to Data Sources

57

Definitions for

Oil and Gas

Industry are

Included

References – Definitions and

Calculations

Frequently Asked Questions (FAQ)

58

FAQ Document is

on GEMI Website

and is accessed

from here

2012 Board of Directors

Chair: Bill Gill, Smithfield Foods

Vice Chair: Neville Dias, Carnival Corporation & plc

Finance Chair: Bill Lechner, The Scotts Miracle-Gro Company

Membership Chair: Lori Williams, FedEx

Benchmarking/Next Initiatives Chair: Lindell Sneed, Abbott

Solution Tools Chair: Steve Shedroff, Procter & Gamble

Communications and Marketing Chair: Heather Tansey, 3M

Senior Advisory Council (SAC) Chair: Steve Schwalb, Perdue Incorporated

Chair Emeritus: Keith Miller, 3M

GEMI Management

Executive Director: Steven Hellem

Director: Amy Goldman

Phone: 202-296-7449

Email: [email protected]

Web site: www.gemi.org

1155 15th Street, NW, Suite 500, Washington, DC 20005 USA

How to Contact GEMI

59

60

www.gemi.org/localwatertool

GEMI welcomes feedback on the use and

value of the GEMI LWTTM for Oil and Gas

to your company.

Please send feedback to: [email protected]