Environmental Compliance
Our environmental policy requires all employees to comply with environmental laws, company environmental standards, and other external company commitments.
ENVIRONMENTAL AUDITS
Weyerhaeuser maintains an environmental audit program to track compliance with environmental laws and our own policies. Our program includes compliance audits of our manufacturing facilities, sales and distribution facilities, real estate subsidiaries, 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 environmental performance.
In 2011, internal environmental compliance audits covered approximately 25 percent of our operations. Our environmental compliance audits identify instances where operations may not comply with either regulatory requirements or company environmental policies. When noncompliance issues are identified, a corrective action plan is developed and implementation is tracked to ensure timely resolution.
INCIDENTS AND PENALTIES
Despite our audit program and commitment to operate in compliance, we sometimes experience incidents of noncompliance. In 2011, our penalties increased compared with 2009 and 2010.
U.S. AND CANADIAN ENVIRONMENTAL NONCOMPLIANCE PENALTIES
| |
20071 |
20082 |
2009 |
2010 |
2011 |
| Fines and penalties |
$15 |
$131 |
$80 |
$35 |
$127 |
| Supplemental environmental projects3 |
$9 |
$1 |
$0 |
$0 |
$0 |
CAPITAL SPENDING
Our capital projects typically are designed to enhance safety, extend the life of a facility, increase capacity, increase efficiency, change raw material requirements, or increase the economic value of assets or products, as well as to comply with regulatory standards.
It is difficult to isolate the environmental component of most manufacturing capital projects. Our capital expenditures for environmental regulatory requirements in 2011 were an estimated $5 million (approximately 2 percent of total capital expenditures). Based on our understanding of current regulatory requirements in the U.S. and Canada, we expect no material capital expenditures for environmental compliance in 2012. These capital expenditures exclude acquisitions and Real Estate.
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.
We have established reserves for estimated remediation costs on the active Superfund sites and other sites for which we are responsible.
In 2011, we had 55 active projects and spent approximately $5 million on environmental remediation. We expect to spend approximately $6 million on environmental remediation in 2012.
Sustainability in Action
15 years of Project eXcellence and Leadership successes for Flint River mill
In 2011, our Flint River cellulose fiber mill, in Oglethorpe, Georgia, completed their Project eXcellence and Leadership (XL) agreement. This project dates back to 1996, when the Flint River mill was accepted into the EPA’s voluntary Project XL program, designed to recognize environmental performance that exceeds to what could be achieved through compliance with existing and reasonably anticipated future regulations. The Final Project Agreement, intended to provide both flexibility in environmental reporting and permitting along with avoidance of capital spending, was a 15-year agreement among the EPA, Flint River’s stakeholders, and the Flint River mill.
Much was accomplished over the past 15 years, including:
- Water use reduced by approximately 35 percent
- Effluent biochemical oxygen demand (BOD) reduced by approximately 45 percent
- Effluent color reduced by approximately 27 percent
- Total reduced sulfur (TRS) emissions reduced by approximately 64 percent
- Solid waste reduced by approximately 87 percent
- Energy use reduced by 14 percent
The project was supported by stakeholder groups including, among others, Georgia Environmental Protection Division, Georgia Southwestern University, the Lake Blackshear Watershed Association, and the Georgia Delegation to the US Congress. As part of the commitment to Project XL, annual stakeholder meetings were held and invitees included local mayors, county officials, EPA staff, Georgia EPD staff, academia, neighbors, and anyone interested in the project.
Below is a brief history of some of the improvements during the Project XL time period:
- 1997: Signed Project XL agreement with the EPA
- 1998: Received Voluntary Protection Program star site designation
- 1999: Installed new packaging line
- 2000: Installed new top level on dryer
- 2000: Implemented new work design (100 reduction)
- 2001: Completed work design (325 to 240 reduction)
- 2002: Received Environmental ISO 14001 EMS Certification
- 2003: Upgraded Concentrated Non-Condensible Gas (CNCG) system
- 2004: Installed lime kiln and woodyard upgrade
- 2005: Installed new chip feed system in digester and upgraded recovery furnace liquor feed
- 2007: Installed additional aerators in wastewater treatment system
- 2008: Dredged 1st cell of wastewater treatment system
- 2009: Installed turpentine standpipe
- 2010: Repaired recovery furnace economizer
- 2011: Installed natural gas capability on power boiler
- 2011: Started new chip stacker reclaimer
- 2011: Started new scalehouse
- 2012: Held final Project XL stakeholder meeting
Although this project is completed, the mill will continue to implement measures to improve its environmental performance. The pending Boiler MACT regulation could require significant capital to reduce further particulate and carbon monoxide emissions from the power boiler. Additional water quality and quantity standards are expected to be promulgated in Georgia as well. To meet the targets, the mill continuously monitors water use, color, and effluent standards on a daily basis in morning production meetings.
Additionally, in 2002, the mill become third party certified to the ISO 14001 EMS standard. To meet one of the requirements of the standard, the mill must to annually establish environmental targets and objectives which are similar to the Project XL goals. So, although Project XL is complete, the mill will continue to look for opportunities to be a leader in environmental management and compliance.
