Safety

Safety

Safety

The safety of our employees, our contractors and the communities where we operate is of the highest priority for Tesoro. By cultivating a culture that holds safety as a Core Value, we aim to achieve an incident-free workplace. Our efforts are focused on providing training and tools that address safety and compliance; collaborating with industry experts to develop best practices; and identifying, evaluating and continually learning from the few accidents that do occur.

EHS&S Management

Our Environmental, Health, Safety and Security (EHS&S) policy establishes standards, responsibilities and metrics for operating in a way that reduces risks, protects the environment, and promotes health and safety. At the center of our EHS&S management is the Operations Excellence Management System (OEMS) – a comprehensive and consistent management approach focused on safe, compliant, reliable and efficient operations.

As we’ve deployed OEMS across our business, we have worked to establish a baseline for performance against which we can continually improve. In 2016, we reached a baseline across 81 percent of our company, with the remainder to be completed in 2018. From here, we can direct additional focus toward improving broader systems that present an inherent risk for our business, in addition to equipment and task-specific actions.

This past year we also launched Destination Zero, a program to engage and inspire employees around Tesoro’s mission to achieve an incident-free workplace. We believe that creating an incident-free workplace is possible for ever-increasing periods of time and that high-level performance is a never-ending journey requiring a daily commitment from everyone.

In 2016, the Tesoro Tanker Fleet in Colton, California completed its 10th consecutive year and nearly 8 million miles without a single Preventable On-Road Accident.* We’re also proud to share that Tesoro’s Anacortes Refinery received the American Fuel & Petrochemical Manufacturers Association Elite Gold Safety Award, which recognized the top 1 percent of facilities in the U.S. for their 2016 safety performance.

*The fleet defines an accident as any preventable or at-fault on-road incident involving an impact with a Company vehicle where damage can be assessed at greater than $0.01 or where injury occurs.

Personal Safety

Everyone who works with us or for us has an important role to play in maintaining Tesoro’s safety commitments. We set rigorous safety standards that comply with and often exceed federal, state and local regulations. We use these standards to measure and audit ourselves, train our employees and contractors, and empower everyone to be part of the responsibility of a safe workplace. Our focus over the past year has been on standardizing best practices for authorizing work in operational areas and better engaging contractors in safety practices.

In 2016, we maintained a combined OSHA recordable incident rate of 0.27 incidents per 100 full-time workers. Our performance in 2016 was consistent with our commendable 2015 personal safety record and exceeded our 2016 target of 0.33. We remain focused on making incremental improvement toward our ultimate goal of zero incidents.

Process Safety

In assuring process safety and asset integrity, we focus on reducing the risk of incidents by using industry-recognized methodologies and safety practices throughout our operations. We use the American Petroleum Institute’s (API’s) guidelines to classify incidents and, through API, voluntarily share lessons learned with the industry. Our management systems are designed to address the types of incidents inherent to our industry, and we also address a broad range of potential risk areas through our safety processes.

This past year we focused on updating our mechanical integrity programs, hosting process safety training for hourly union workers and conducting a process safety culture survey, the results of which will help us continue to improve in the years to come. Additionally, three of our refineries — Salt Lake City, Martinez and Dickinson — along with our Rockies business unit, which comprises five natural gas processing plants, achieved zero API Tier 1 or Tier 2 incidents.

We exceeded our process safety performance target for 2016, achieving an API Tier 1 and 2 event rate per 100 full time workers of 0.07, which was a 22 percent reduction in process safety incidents from 2015.

Transportation Safety

To safely operate our transportation facilities and assets – such as rail, trucks and pipelines – we rely on industry best practices, internal policies, and persistent evaluation and improvement. Tesoro has proactively led the industry in the safe shipment of crude oil via rail.

Last year we continued to modernize our tank car fleet by adding 525 DOT120J200 tank cars – a safer tank car model that exceeds federal regulations – as well as phasing out 500 older cars and retrofitting another 250 cars. We also updated internal governance guidelines to improve consistency in how the Company approaches rail operations and safety. This has been particularly important with the growth in our transportation business, and we will remain committed to safety as we grow.

As a result of these efforts, 2016 marked four years without a reportable spill at our Anacortes Crude by Rail Offloading Facility, during which time we moved 70 million barrels of crude oil using more than 1,000 trains.