Environmental Compliance

Our environmental policy requires all employees to comply with environmental laws, company environmental standards, and other external company commitments.

Weyerhaeuser maintains environmental audit programs to track compliance with environmental laws and our own policies. Our program includes compliance audits of our manufacturing facilities, forests, and management systems. In addition to identifying potential risks and areas for improvement, these audits also identify best practices, which are then shared across the company. The frequency of audits at an operation depends on the level of risk associated with the operation and past performance.

In 2006, internal environmental compliance audits covered approximately 21 percent of our manufacturing operations. Our environmental compliance audits identify instances where operations may not comply with either regulatory requirements or company environmental policies or standards. When issues are identified, a corrective action plan is developed and implementation is tracked to ensure timely resolution. In 2006, we made significant improvements to the environmental compliance audit program based on a review undertaken in 2005. Revisions increased the rigor of audit findings and the process for closing identified issues. We also audit our conformance with ISO 14001 EMS. In 2006, internal audits evaluating our conformance with ISO 14001 environmental management systems covered approximately 48 percent of our manufacturing operations.

Capital Spending

Our capital expenditure for environmental regulatory requirements in 2006 was an estimated $21 million (approximately 2 percent of total capital expenditures). In 2007, we expect capital expenditures for environmental compliance to be about $10 million (approximately 1 percent of expected total capital expenditures). These capital expenditures exclude acquisitions and Real Estate and Related Assets.

Environmental Remediation

We maintain an environmental remediation program to fulfill our responsibilities under regulatory agreements, reduce the risk of environmental harm, and reduce the potential financial liability because of past practices at sites owned, acquired or divested by Weyerhaeuser; certain third-party sites; and Superfund sites where we have been named as a potentially responsible party.

• Since this program's inception, 203 remediation projects have been completed.
• At the end of 2006, we had 67 active projects and spent approximately $12 million on environmental remediation.