Health and Safety

Health and safety is a central element of California Resources Corporation’s (CRC) core values of Character, Responsibility and Commitment and our Board of Directors’ first HSE Principle. The National Safety Council has recognized the safety performance of our employees each year since our formation. In 2020, CRC and our regional operations received 24 National Safety Achievement Awards for our 2019 performance.

Health and safety performance is also one of CRC’s Sustainability Metrics. We use the U.S. Occupational Safety and Health Administration’s Injury and Illness Incidence Rate (IIR, also known as the Total Recordable Incident Rate or TRIR) to measure the rate of recordable illnesses or injuries per 200,000 work hours (i.e., 100 full-time workers) per year. Importantly, we apply our metric equally to our own employees and to the employees and subcontractors of our joint ventures, suppliers and vendors while working on our behalf, since we believe our safety culture must encompass everyone who works on or visits our operations.

We work actively to reduce potential risks in our operations by setting consistent expectations in our job planning and contractor selection, empowering and training our workforce as safety leaders, and supporting them with safe work practices, technology and rigorous maintenance and asset integrity programs. All employees, suppliers and vendors have the authority and responsibility to stop any activity – without repercussions – that they perceive may be unsafe or may give rise to an environmental incident. Reporting of stop work events and other incidents is mandatory for employees, contractors and visitors alike, so that we can review and learn from them to prevent recurrence.

One of our most important achievements in 2019 was our health and safety record: CRC had zero recordable employee workplace injuries or illnesses. On a combined basis, including contractors, we achieved an impressive IIR of 0.34, a new company record, which is better than safety statistics in the insurance and finance sectors according to the latest data available from the U.S. Bureau of Labor Statistics in 2018. For further comparison, the incident rate of 0.9 for the crude oil and natural gas extraction sector as a whole is over 2.5 times higher than CRC’s IIR, and the rate for all U.S. employers of 3.1 is over nine times higher than CRC’s.

CRC’s safety results since our formation have consistently outperformed the oil and gas extraction industry’s national average, which is, in turn, far better than the national average for all private employers and even for sectors like colleges, universities and professional schools. We have not had any occupational fatalities in our operations since our launch as an independent company in 2014. For 2020, we have established a target IIR of 0.40 for our annual Safety Metric which, if achieved, would reflect the second-best performance in the long history of our operations, after our 2019 record performance.

Our safety performance results are presented in the graph and table below, benchmarked against other sectors.

CRC Sustains Exemplary Performance with a Low Injury and Illness Incidence Rate (IIR) Image

Year Occupational Fatalities CRC IIR1 IIR for Oil & Gas Extraction Sector2 IIR for Colleges, Universities & Prof Schools2 IIR for All Industries2
2013 0 0.54
2014 0 0.46
2015 0 0.56
2016 0 0.49
2017 0 0.62
2018 0 0.50 .9 1.7 3.1
2019 0 0.34

1CRC’s Injury and Illness Incidence Rate (IIR), also known as the total recordable injury rate (TRIR), is the number of recordable occupational injuries or illnesses per 200,000 work hours (i.e., 100 full-time workers) per year, applying the methodology of the Occupational Safety and Health Administration of the U.S. Department of Labor. CRC’s IIR applies to both CRC employees and the employees and subcontractors of our joint ventures, suppliers or vendors while working on our operations.

2The IIRs shown for all U.S. industries (including all private, state and local government employers) and for the Oil and Gas Extraction sector are the respective average IIRs reported by the Bureau of Labor Statistics of the U.S. Department of Labor for 2018, the most recent year available (published in 11/2019).

Injury & Illness Incidence Rate for CRC and Selected Industries Image

Source: Bureau of Labor Statistics, latest available data for industry sectors as of 2018 (published 11/2019) Injury Rates for CRC Operations Vs. E&P Industry Image

Notes: E&P industry average reflects the latest available U.S. BLS data for the Crude Oil and Natural Gas Extraction sector as of 2018 (published 11/2019). In addition, prior to 2014, the combined CRC IIR reflects Occidental Petroleum’s California operations.

Learn more about CRC’s Long-Term Commitment to Safety and Sustainability (PDF) and read our 2019 Sustainability Report (PDF).

CRC Highlights

  • Received 24 National Safety Achievement awards for 2019 performance
  • Zero employee workplace injuries and illnesses for well over a year
  • Achieved our best safety record ever with lowest incident rate for our combined workforce, including contractors