Sustainability at Colgate
Operating responsibly and minimizing our environmental impact are principal components of our business. We recognize that sustainable and responsible development of our oil and natural gas resources is a prerequisite for Colgate’s continued success. Our ESG priorities focus on protecting the environment and ensuring that our operations have minimal surface and subsurface impacts throughout the development lifecycle. We are doing our part to provide affordable and reliable energy to the world while investing in our local communities to improve the quality of life where we work. We understand the responsibility that comes with developing resources that fuel modern civilization and emphasize that mindset as a part of our culture.
We are proud of the progress we have made in a short period of time and continue to strive to be among the best of our peers in environmental, social, and governance efforts.
Preliminary Sustainability Report
The entire Colgate team lives and works in the Permian Basin and as such we are further motivated to be responsible stewards of our assets. With approximately 70 employees and over 200 family members living in the communities where we operate, we take seriously our responsibility to protect the environment for future generations. We actively advance sustainability initiatives and provide a safe and healthy environment for our employees, contractors, and landowners.
We believe our hands-on approach and attention to detail drive our performance in effectively managing ESG matters. Our goal is to mitigate risks while maximizing returns for our stakeholders. We are dedicated to performing these duties in strict compliance with applicable federal, state, and local laws regulating our operations. We take actions beyond those required by law to reduce greenhouse gas emissions and make significant investments in infrastructure to reduce our environmental impact.
As our Company has grown, we have maintained focus on creating value for our stakeholders through sustainable development. Our asset base has increased significantly over the past few years due to a combination of efforts including grassroots leasing, organic development and numerous acquisitions. This increase in scale has been accompanied by a continued emphasis on minimizing the footprint of new operations and improving upon the efficiency of legacy operations that we have acquired. Our culture empowers employees and contractors to improve upon historical operating practices by utilizing the latest technologies and to always be cognizant of the impact that our operations have on the environment.
Measures to Reduce Flared Gas
One of our highest ESG priorities and where we believe we can make the largest near-term environmental impact is to minimize the flaring of natural gas. While we have always been compliant with local, state and federal permit guidelines, we have taken proactive measures to further implement material initiatives to address historical causes for flaring. We are proud to announce that we have reduced flaring intensity of gross gas to an average less than 1% in the fourth quarter of 2021.
Within our Preliminary Sustainability Report, we further discuss the practices in place to reduce flared gas, protect our water resources, maintain regulatory compliance, minimize our footprint by prudent land use, and reduce greenhouse gas and other emissions.
“Colgate has focused its philanthropic efforts in the Permian Basin to enrich the community for all to benefit. We have provided meaningful contributions to carefully selected organizations and continue to strive to be an impactful, supportive member of our communities.”
— John Bell, Senior Vice President, Commercial
Colgate has focused on treating each employee as a member of the Colgate family, and the employees at Colgate are some of the best in the industry. A core tenet of our corporate values is being impactful, supportive members of our community and encouraging our employees to get involved in these efforts. We live where we operate, which further motivates us to carry out a safe and responsible development program.
We work hard to provide a collaborative atmosphere so all employees are empowered to participate and are treated with respect. This allows individuals to contribute their full talents and best ideas. Our entrepreneurial work environment enables us to innovate, adopt new technologies, and consistently find ways to improve our business. At year-end 2021, our workforce comprised of approximately 70 employees, all of which office in downtown Midland, Texas.
Within our Preliminary Sustainability Report we discuss our approach to engaging our employees, fostering innovation and diversity, recruiting and retaining our workforce and the benefits we provide our team.
Permian Strategic Partnership and Community Involvement
Colgate is proud to be a member of the Permian Strategic Partnership (PSP). PSP seeks to improve the quality of life for Permian Basin families by fostering quality education, affordable housing, access to medical professionals, safer roads, and workforce development. Being a part of this greater organization enables Colgate to give back in a more lasting and meaningful manner.
The PSP is a coalition of 17 leading Permian Basin energy companies who joined together to work in partnership with leaders across the region’s communities to address current and future challenges to the responsible development of the oil and gas resources of the Permian Basin in the states of New Mexico and Texas. Over the past four years, PSP has directly invested $90 million in Permian Basin projects and contributed to collaborative investments totaling approximately $950 million.
Colgate has provided meaningful contributions to carefully selected organizations in the Permian Basin to enrich the community for all to benefit. Within our Preliminary Sustainability Report, we provide more detail about key community partnerships and investments made across the Permian Basin.
“All field personnel are given Stop Work Authority for reporting incidents and identifying any potential incidents that could have occurred to their supervisor. Getting our team members back to their families safely is a top priority for Colgate’s operations.”
— Casey McCain, Senior Vice President of Operations
The foundation of our safety culture is formed by leadership encouraging employees and contractors to take whatever actions are necessary to protect the health and safety of all field personnel and the surrounding environment. Our safety program incorporates an extensive set of protocols and initiatives that prioritize the health and safety of our employees, contractors, and landowners. Each operations discipline conducts pre-tour job safety assessments (JSAs). The manager of each operations department (drilling, completions, and production) conducts a daily call verifying JSAs have been conducted and reports this information to senior management on a weekly basis.
The effectiveness of our safety initiatives is the result of a joint effort from all of our employees and contractors that requires training, contribution, ownership, and commitment. We work tirelessly to develop Colgate’s safety culture and improve processes in alignment with reputable safety and environmental management systems.
We highlight key safety metrics and detail our approach to operating safely within our Preliminary Sustainability Report.
Our approach to corporate governance seeks to promote communication, transparency, and accountability. We advocate ethical practices in the management and operations of the Company which benefits our long-term success. We are committed to the highest business principles and complying with all applicable local, state, and federal laws, rules, and regulations. Our corporate governance documents reflect our commitment to maintaining the trust and confidence of our stakeholders and other people with whom we do business.
Our management team is comprised of individuals who are diverse in experience and education and help oversee all corporate responsibility strategies and activities at Colgate including our standards of professional conduct. This interdisciplinary approach promulgates conversations within the Company, allows for ethical considerations to be fully explored, and implements practices in an efficient manner.
We are governed by a seven-person Board of Managers and is responsible for providing oversight and direction to the Company management. The Board continually seeks to ensure that our governance practices support effective oversight of our strategy, operational and sustainability performance, and evaluation of key risks and opportunities as they emerge and evolve.