2007 was the fourth year for the Company to implement the “Foundation Year of Safety and Environment” . Stronger and more effective measures have been taken to strengthen management and execution capacity at grassroots level. As a result, the Company has achieved record highs in all indicators of safe production and environmental protection.

 Implement accountability systems for safety and environmental protection

In January 2007, Mr. Jiang Jiemin, the Chairman of the Board and President of PetroChina, signed the Safety and Environment Accountability Pledge with chiefs of affiliated companies.

The Pledge defined the persons accountable, the accountability goals and accident-control indices, which were integrated into the annual performance appraisal of senior executives. By signing the pledge at each level, responsibilities were assigned and shared among senior executives, division heads and each unit at all levels. In 2007, 1,293 senior executives presented their safety operation reports.

Further improve management standards, system and operation instructions of safety and environmental protection

In 2007, the Company issued and implemented a series of standards, such as Methods of HSE information System Management, Regulations on Classification of Major Dangerous Sources and Specifications for Safety H elmet Production and Utilization Management; established (and revised) several management systems, such as Opinions on Strengthening and Standardizing Frontline Team Management and Special Reward Me hods for Reporting of Operation Hazards; compiled more than 800 operating instructions, 6,614 operating instructions on maintenance and over 24,000 operating sheets for refining units, while also prepared 337 operating instructions and 56,000 operational diagrams and revised 25,000 operating instructions on maintenance for chemical units. In addition, the Company formulated safety production procedures in consistence with program management, workflow standardization and operational guidelines. In December 2007, the PetroChina Research Institute of Safety and environment.Technology was established to support the Company with more consistent safety and environment strategy and technologies.

Strengthen risk control and emergency response system
We continuously improved the ability to prevent, manage and recover from crises and accelerated the enhancement of an emergency response/rescue system. In 2007, 4 of the Company's affiliated enterprises completed the formulation of 13 emergency prevention and control projects while the core part of the 3-level prevention and control project was completed; the Sichuan Oil/Gas Well Fire Fighting Company became an emergency rescue base for fires, integrated rescue, operation testing, training and drills. Besides, the Company further improved 13 emergency centers and 28 rescue teams for long distance oil and gas pipelines maintenance and repair in 6 regions such as China's North and Northeast regions. The Company also reinforced the construction of offshore emergency rescue and response centers and drills and built 3 offshore emergency rescue stations in Yingkou, Caofeidian and Tanggu, presenting the capacity to handle level-2 oil spill emergencies.

Reinforce anti-violation measures

In 2007, the Company's affiliated enterprises formulated 1880 anti-violation mechanisms and instructions, built a personal safety operation record and carried out a score-based punishment system. Over 26,000 person-times were found and punished for violations, and more than 30,000 person-times were awarded for identifying and resolving hazardous situations and preventing the “three violations” .

Formation of the Green Team at grassroots level

In 2007, the Company aimed to achieve a zero injury, zero pollution and zero accident working environment. At individual units of production, refining and chemical, pipelines and marketing, green teams were formed at different levels, strictly following HSE standards and strongly advocating HSE culture and concepts. Environment-friendly facilities were installed and used according to HSE standards in order to enhance standardized management capabilities of field environmental protection at the grassroots level. In 2007, 108 grassroot units (workshops and installations) were recognized as Green Teams.

Advanced training on safety and environmental protection

The Company reinforced the certification process for key posts with necessary operational and HSE training. HSE training materials for safety managers, overseas business managers, technical staff and HSE auditors were formulated; safety manuals for gas recovery operators, catalysis facilities, ethylene plant, oil transportation operators, oil depot and service station of compressed natural gas (CNG) were compiled and HSE training session were held 2,278 person-times to include the participation of safety managers, safety supervisors, HSE auditors, environment monitoring and offshore operation staff. As for the affiliated companies, training programs were organized for about 23,000 management staff at all levels, for over 274,000 person-times who changed or accepted new post and for 125,000 person-times for those in special operation posts.

Tarim Oilfield Company invited DuPont Safety Management Consulting Company to implement a safety practice campaign.157 person-times received 5 training sessions on safety leadership aimed at oilfield leaders and senior leaders in each unit; 209 person-times received 7 training sessions on safety practice aimed at operation zone managers and frontline managers; 351 person-times received 3 training sessions on safety management skills aimed at station leaders and team leaders.

Changqing Petrochemical Company, located near the bank of the Weihe River, abiding by the principles of “upright and civilized, harmonious with the nature” , built in a safe HSE culture, unremittingly investigated hidden hazards, combated against the “three violations (violations in command, operation and labor discipline)” , and strictly managed the production plant according to strenuous HSE standards. The “three wastes” and noise discharged in the plant were all kept under relevant standard levels. In 2007, Changqing Petrochemical Company was given the title of “Outstanding Company in Environmental Protection Contribution” in Shaanxi Province and won the exclusive title of “Green Enterprise and Green Community” by the Shaanxi government.