WATER MANAGEMENT POLICY

This water policy is a key component of the Paramount HSE policy which mandates environmental stewardship, environmental protection, and mitigation of harm to people and property.  Water resources are an integral part of the business operations of Paramount Resources.  The responsible use of water, and the safe processing, handling, and disposal of produced water is necessary to ensure Paramount’s ongoing success.  Paramount is committed to a comprehensive Corporate Water Strategy, which mandates continuous improvement in water management by assessing and implementing technologies and processes to facilitate responsible use of water in the development of petroleum resources. Our obligations include:

Regulatory Compliance:  Paramount is committed to complying with or exceeding applicable government regulations and recognized industry standards and internal practices.

Environmental Protection: Paramount is committed to achieving a high standard of environmental stewardship. We will make environmental protection a consistent component of our corporate decision making by identifying the potential environmental impacts associated with our activities and taking prudent action to minimize these impacts including mitigating negative effects on ground water during well completions.

Water Resources: Paramount is committed to meeting or exceeding industry and government standards in sourcing, handling, storage, and disposal of our water resources.  We recognize that we need water for our operations, and that we must use this resource responsibly and sustainably for continued success.  Paramount is committed to evaluating solutions and conducting technology trials to find safe, economically viable, and technologically reliable treatments to utilize non-potable water (produced water, recycled flowback water, industrial and municipal waste water, saline groundwater) in our operations.

Fresh Water Stewardship:  Paramount recognizes the value of fresh water to our neighbors, to the environment, and to our ongoing operations.  Paramount is committed to the responsible use of fresh water by prioritizing sources that minimize impacts to rivers, streams, wetlands, lakes, and watersheds.  Paramount recognizes the inherent value of utilizing non-potable water sources in operations to offset fresh water usage, while at the same time balancing with our commitment to control the environmental risk associated with the handling, storage, and transportation of saline produced water. 

Impact Assessment:  Paramount is committed to minimizing the impact of water usage in the areas in which we operate.  Every operating area will have unique challenges and opportunities which will be identified, and an area impact assessment prepared, incorporating long term plans, water usage demands, storage requirements, infrastructure requirements, and a process for review, benchmarking, and adjustment to respond appropriately to the ever-changing environmental conditions of the lands upon which we operate.

Paramount requires that its management, supervisors, workers, contractors, consultants and other parties performing work on behalf of the company to act in accordance with our Water Management Plan.  Paramount’s interests and those of our stakeholders are best served by effectively managing our water usage, and ensuring sustainability in the environment in which we operate.  Everyone who represents our company has a duty and responsibility to 1) ensure regulations are followed 2) ensure that our corporate water use practices minimize the impact on the environment and the public, and 3) ensure that internal practices are continually improved to achieve our corporate goals and objectives sustainably and responsibly.