HEALTH, SAFETY, AND ENVIRONMENTAL
Southern Energy is focused on the highest levels of Health, Safety and attention to the environment. As such, it has a Reserves, Health, Safety and Environment Committee.
The members of the Reserves, Health, Safety and Environment Committee are Mr Neil Smith (Chairman), Mr Beynon and Ms. MacDonald. The Reserves, Health, Safety and Environment Committee meets at least twice annually and otherwise as requested by the Board or considered desirable by the Chair of the Reserves, Health, Safety and Environment Committee.
The Reserves, Health, Safety and Environment Committee’s responsibilities include:
(a) reviewing management’s recommendations for the appointment of independent engineers,
(b) reviewing the independent engineering reports and considering the principal assumptions upon which such reports are based,
(c) reviewing management’s input into the independent engineering report and key assumptions used,
(d) reviewing the reserve additions and reserve revisions which occur from one report to the next and seeking the independent engineer’s input and management’s input with respect to why these revisions have occurred,
(e) reviewing the information supplied to the independent engineers with respect to the constant price case, operating costs, royalty burdens, required capital expenditures, recovery rates, decline rates and other matters,
(f) annually reviewing the appropriateness of, and updating, Southern Energy’s environmental policies, management systems and programs and reporting to the Board thereon,
(g) ensuring that Southern Energy has the necessary tools to measure its business units’ environmental performance and compliance with applicable regulatory standards,
(h) reviewing the environmental performance and, whenever relevant, any non-compliance situation of Southern Energy’s business units, to recommend the required corrective measures,
(i) ensuring that environmental risk management procedures and emergency response measures are in place and are periodically updated and distributed within Southern Energy,
(j) assessing the environmental risks and emergency situations brought to its attention to recommend the required corrective measures,
(k) immediately communicating any incident giving rise to significant environmental risks to the Board,
(l) recommending to the Board that Southern Energy exercise due diligence with respect to non-compliance situations, environmental risks or emergency situations brought to its attention,
(m) reviewing and reporting to the Board on all legal notices or civil, penal or criminal prosecutions brought to its attention,
(n) recommending to the Board measures, including necessary investments, taking into account available technologies and economic and financial restraints, to ensure compliance with regulatory standards and Southern Energy’s environmental policies and programs,
(o) analysing all environmental matters brought to its attention and deemed relevant or that the Board specifically asks the committee to review, and
(p) reporting to the Board on Southern Energy’s environmental policies, programs and situation and make appropriate recommendations.