CDP. Module: Introduction. Page: W0. Introduction. Water 2016 Information Request W0.1. Introduction

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1 CDP Water 2016 Information Request Noble Energy, Inc. Module: Introduction Page: W0. Introduction W0.1 Introduction Please give a general description and introduction to your organization. Noble Energy, Inc. ( Noble Energy or Company ) is a leading independent energy company engaged in worldwide crude oil, natural gas, and natural gas liquids (NGLs) exploration and production. Founded by Lloyd Noble in 1932, Noble Energy, a Delaware corporation, has been publicly traded on the New York Stock Exchange (NYSE) since 1980 under the ticker symbol NBL. This disclosure includes Noble Energy and its subsidiaries. Noble Energy a diversified high-quality portfolio of both U.S. unconventional and global offshore conventional assets spanning three continents. Noble Energy s core operating areas include the Denver- Julesburg (DJ) Basin, the Marcellus Shale, the Permian Basin, the Eagle Ford Shale, the deepwater Gulf of Mexico, offshore West Africa, and offshore Eastern Mediterranean. Proved reserves are geographically balanced amongst the international and domestic operations, with 1,400 million barrels of oil equivalent (BOE) proved at the end of In 2015, sales volumes from continuing operations totaled 355 thousand BOE per day. Visit Noble Energy online at W0.2 Reporting year Please state the start and end date of the year for which you are reporting data. Period for which data is reported Thu 01 Jan Thu 31 Dec 2015

2 W0.3 Reporting boundary Please indicate the category that describes the reporting boundary for companies, entities, or groups for which water-related s are reported. Companies, entities or groups over which operational control is exercised W0.4 Exclusions Are there any geographies, facilities or types of water inputs/outputs within this boundary which are not in your disclosure? Yes W0.4a Exclusions Please report the exclusions in the following table Exclusion Please explain why you have made the exclusion This year s disclosure excludes operations outside of Noble Energy s Core operating areas. The company s core operating areas are the Denver-Julesburg (DJ) Basin, the Marcellus Shale, the Permian Basin, the Eagle Ford Shale, the deepwater Gulf of Mexico, offshore West Africa, and offshore Eastern Mediterranean. This year s disclosure also excludes operations in the Eagle Ford Shale and the Permian Basin that occurred before July 20, 2015, which is the date Noble Energy merged with Rosetta Resources, Inc. The disclosure The development of Noble Energy s core assets represents the bulk of the Company s water use. These areas are the focus of Noble Energy s water development and long-range planning. This exclusion is meant to exclude areas where Noble Energy does not have operational control, new venture areas where the oil and gas resource is being evaluated, and production areas where no new development is occurring. These Texas assets were not under Noble Energy s operational control prior to July 20, 2015; therefore Noble Energy did not have direct or indirect control over water management in these assets prior to that date.

3 Exclusion Please explain why you have made the exclusion includes information from operations in the Eagle Ford Shale and Permian Basin occurring after July 20, Further Information Module: Current State Page: W1. Context W1.1 Please rate the importance (current and future) of water quality and water quantity to the success of your organization Water quality and quantity Direct use importance rating Indirect use importance rating Please explain Sufficient amounts of good quality freshwater available for use Sufficient amounts of recycled, brackish and/or produced water available for use Important Neutral Neutral Not important at all Direct: Noble Energy's onshore operations require sufficient quantities of water to support drilling and hydraulic fracturing and across the company s value chain. The Company has taken measures to reduce our reliance on freshwater by using water more efficiently, replacing freshwater with saline or recycled water where possible, and by changing the hydraulic fracturing technique to allow lower quality water to be used. Indirect: Currently, Noble Energy provides water to its key suppliers for indirect operations. The amount of water used indirectly to produce raw materials such as sand and steel casing would be reported in other industry disclosures or are negligible in comparison to the direct use. A lack of freshwater can have a significant on our direct and indirect operations hence the rating of important and neutral. Direct: The Company s operations require sufficient quantities of water. However, since water quality is not a major concern, recycled, saline and/or produced water may be used, but currently are not required to meet operational demands. Where possible, Noble Energy strategically uses saline and/or produced water as a means to reduce freshwater use. While the amount of recycled and

4 Water quality and quantity Direct use importance rating Indirect use importance rating Please explain produced water used is growing, it is not an essential resource. Recycled, saline and/or produced water may be used across portions of the Company s value chain, but currently is not required to meet operational demands. Indirect: Currently Noble Energy provides 100 percent of the saline water used by its suppliers for indirect operations. As a result, suppliers are not responsible for procuring saline or produced water. A lack of recycled, saline and/or produced water will have a limited on our direct and indirect operations hence the rating of neutral and not important at all. W1.2 For your total operations, please detail which of the following water aspects are regularly measured and monitored and provide an explanation as to why or why not Water aspect % of sites/facilities/operations Please explain Water withdrawals- total volumes Noble Energy tracks the total amount of water withdrawn for operations. Water withdrawals- volume by Noble Energy tracks the total amount of water withdrawn for each business unit and records sources the volumes of water for several categories and uses. Water discharges- total volumes Noble Energy tracks the total amount of water discharged from operations. Water discharges- volume by destination Noble Energy tracks the discharge of water by destination. Water discharges- volume by treatment method Noble Energy tracks the treatment and disposal of wastes, including water. Water discharge quality dataquality by standard effluent parameters At locations where Noble Energy discharges water to surface water or groundwater, the quality of the discharge is monitored in accordance with federal, state, and local regulations and best management practices. Water consumption- total volume Noble Energy tracks the total amount of water consumed for operations.

5 Water aspect % of sites/facilities/operations Please explain Facilities providing fully-functioning WASH services for all workers Noble Energy ensures that adequate water is available for potable uses, sanitation and hygiene for every employee. W1.2a Water withdrawals: for the reporting year, please provide total water withdrawal data by source, across your operations Source Quantity (megaliters/year) How does total water withdrawals for this source compare to the last reporting year? Comment The drilling and completion of fewer wells resulted in a decrease in freshwater Fresh surface water 3210 Much lower withdrawals. Brackish surface The majority of this water is used to enhance production in an offshore pressure 5231 Much higher water/seawater maintenance project, which was not previously reported. Rainwater 0 About the same Noble Energy did not procure rainwater for use in its operations. Groundwater - renewable Groundwater - nonrenewable Produced/process water 2985 Much higher 407 Much lower 4828 Municipal supply 24 Lower Wastewater from another organization 49 Higher This is our first year of measurement The addition of new assets in Texas resulted in an increase of withdrawals from renewable groundwater sources. The drilling and completion of fewer wells resulted in a decrease in non-renewable groundwater withdrawals. In previous years Noble Energy reported the quantity of produced water that was recycled and used in its operations. This is the first year that Noble has reported the amount of produced water generated during operation. This number also includes flowback for some business units. The drilling and completion of fewer wells resulted in a decrease in withdrawals from municipal supplies. In 2015, Noble Energy began to utilize flowback and/or produced water from a JV partner in order to optimize operations for both companies.

6 Source Quantity (megaliters/year) How does total water withdrawals for this source compare to the last reporting year? Comment Total Higher The inclusion of water used in a pressure maintenance project as well as including the amount of produced water generated, rather than the amount recycled, resulted in an increase in the amount of water withdrawals disclosed. W1.2b Water discharges: for the reporting year, please provide total water discharge data by destination, across your operations Destination Quantity (megaliters/year) How does total water discharged to this destination compare to the last reporting year? Comment Fresh surface water 0 About the same Brackish surface water/seawater 1951 Higher Groundwater 2825 Higher Municipal/industrial wastewater treatment plant Wastewater for another organization 2 About the same 213 Total 4992 Higher This is our first year of measurement Noble Energy did not discharge flowback and/or produced water to fresh surface water in Water that is discharged to seawater is primarily from offshore operations, where most of the discharges are once-through cooling water that is returned to sea. The addition of two new core assets in Texas has resulted in an increase in the amount of water discharged in injection wells. This is waste that could not be discharged overboard and was sent to third party disposal companies. This waste was usually recycled by those companies. In 2015, Noble Energy sent flowback and/or produced water to a JV partner in order to optimize operations for both companies. The addition of two new core assets in Texas on July 20, 2015 has resulted in increased water discharges

7 W1.2c Water consumption: for the reporting year, please provide total water consumption data, across your operations Consumption (megaliters/year) How does this consumption figure compare to the last reporting year? Comment Higher The inclusion of water used in an offshore pressure maintenance project resulted in higher water consumption. This water consumption also includes 674 megaliters of produced water that was reused or recycled. In addition, this number includes operations that were excluded from the 2014 report, such as the core Texas assets that were acquired in July, W1.3 Do you request your suppliers to report on their water use, risks and/or management? No W1.3a Please provide the proportion of suppliers you request to report on their water use, risks and/or management and the proportion of your procurement spend this represents

8 Proportion of suppliers % Total procurement spend % Rationale for this coverage W1.3b Please choose the option that best explains why you do not request your suppliers to report on their water use, risks and/or management Primary reason Please explain Assessed risk but no risk found Noble Energy s key suppliers are drilling and completions service companies. Noble Energy supplies water to service companies for this work, so their water use is already in the water footprint. The amount of water used by other suppliers is negligible in comparison to the use of our key suppliers. W1.4 Has your organization experienced any detrimental s related to water in the reporting year? Yes W1.4a Please describe the detrimental s experienced by your organization related to water in the reporting year

9 Country River basin Impact indicator Impact Description of Length of Overall financial Response Description of response States of Other: Ohio River Phys- Inadequate infrastructure Higher operating costs Lower demand for recycled water coupled with limited disposal capacity in the area resulted in increased costs for water management. 1-3 years The cost of transportation and disposal has increased; however, Noble Energy has reduced the s through contract negotiations and through water sharing with their JV partner. Engagement with other stakeholders in the river basin Engagement with suppliers Noble Energy worked with a JV partner to share water in order to reduce the amount of water disposed. Noble Energy also continued to work with suppliers to reduce costs and increase options for water management. States of Other: South Platte Phys- Inadequate infrastructure Higher operating costs Water costs are higher in areas of new growth as a result of limited infrastructure or limited access to water rights. 1-3 years The cost to procure water has increased in the near term. Noble Energy is planning and developing infrastructure to procure, transport, and store water more efficiently to meet the demand of planned and proposed activities. Infrastructure investment Noble Energy is developing infrastructure to meet the timing and volume demands of new projects in remote areas. States of Other: Nationwide Rep- Community opposition Loss of license to operate There is growing opposition to hydraulic fracturing and the use of underground injection wells for waste disposal, which could in the short-term affect the industry s social license to operate and over the longer-term result in regulatory restrictions on related operations. 1-3 years The cost s cannot be determined at this time given the uncertainty in the regulation. Engagement with community We strive to adopt best practices and industry standards and comply with all regulatory requirements regarding well construction and operation. For example, the qualified service companies we use to perform hydraulic fracturing, as well as our personnel, monitor rate and pressure to assure that the services are performed as planned. Our

10 Country River basin Impact indicator Impact Description of Length of Overall financial Response Description of response well construction practices include installation of multiple layers of protective steel casing surrounded by cement that are specifically designed and installed to protect freshwater aquifers by preventing the migration of fracturing fluids into those aquifers. We believe that these processes help ensure hydraulic fracturing is safe and does not and will not pose a risk to water supplies, the environment or public health. Where possible, we engage in significant water recycling efforts. Water is recycled in both the DJ Basin and Marcellus Shale with plans to recycle water in the Texas assets. This recycling reduces our water footprint and s on local water users. Given our management practices, we work to advance the dialogue around our operations. Noble Energy is a member of Coloradans for Responsible Energy Development (CRED), whose mission is to provide scientifically sound information about fracking to the public. Noble Energy is also researching and

11 Country River basin Impact indicator Impact Description of Length of Overall financial Response Description of response implementing technologies that will reduce the Company s reliance on injection wells. W1.4b Please choose the option below that best explains why you do not know if your organization experienced any detrimental s related to water in the reporting year and any plans you have to investigate this in the future Primary reason Future plans Further Information Module: Risk Assessment Page: W2. Procedures and Requirements W2.1 Does your organization undertake a water-related risk assessment? Water risks are assessed

12 W2.2 Please select the options that best describe your procedures with regard to assessing water risks Risk assessment procedure Coverage Scale Please explain Comprehensive company-wide risk assessment Direct operations and supply chain All facilities and suppliers Noble Energy evaluates water-related risks throughout the lifespan of its operations. An initial assessment is conducted prior to exploration in a new region to evaluate water risk. As a region is developed, risk assessments are conducted regularly to help guide the development. Assessments are also conducted on an as-needed basis to address changes in operations, site conditions and regulations. The Company s key suppliers are drilling and completions service companies who use water supplied by Noble Energy. Because of this, Noble Energy does not assess the water risk of other industries that may report water risk independently or of suppliers that have a negligible to the Company s water risk. W2.3 Please state how frequently you undertake water risk assessments, what geographical scale and how far into the future you consider risks for each assessment Frequency Geographic scale How far into the future are risks considered? Comment Six-monthly or more frequently Business unit >6 years Noble Energy regularly evaluates water risk within each regional business unit to develop or improve a water management that is specific to the business needs and water risks of that area. Noble Energy evaluates water-related risks for each development plan, well pad and facility to mitigate risk, and ensure an adequate water supply and water management options are available. Six-monthly or more frequently Facility 1 to 3 years

13 Frequency Geographic scale How far into the future are risks considered? Comment Annually River basin 1 to 3 years Sporadically not defined Country >6 years Noble Energy evaluates changes to river basin management plans to ensure an adequate water supply is available, identify and mitigate risk, and comply with local and state regulations. Prior to exploration and acquisitions, Noble Energy evaluates water risks in the proposed development area. W2.4 Have you evaluated how water risks could affect the success (viability, constraints) of your organization's growth? Yes, evaluated over the next 10 years W2.4a Please explain how your organization evaluated the effects of water risks on the success (viability, constraints) of your organization's growth? Drilling and development activities require the use of water and results in the production of flowback and produced water. The development of new environmental initiatives or regulations related to acquisition, withdrawal, storage and use of surface water or groundwater, or treatment and discharge of water may limit our management options, increase our operating costs, or cause delays, interruptions or termination of our operations, all of which could have an adverse effect on our operations and our finances. To manage these risks, Noble Energy conducts long-range planning to evaluate the available water quantity, water quality, water management options, and the regulatory framework, prior to exploration and production activities. On regional, watershed, and asset scales a water management is developed to mitigate identified water-related risks. The water may include, among other recommendations, using alternative water sources, building infrastructure such as pipelines and storage, or optimizing the timing of activities. The Company's analysis of water-related risks includes an information-gathering process, site surveys and sampling, environmental due diligence, participation in industry association work groups and stakeholder engagement. Once a project is sanctioned, Noble Energy continually evaluates potential water risks to update its water management.

14 W2.4b What is the main reason for not having evaluated how water risks could affect the success (viability, constraints) of your organization's growth, and are there any plans in place to do so in the future? Main reason Current plans Timeframe until evaluation Comment W2.5 Please state the methods used to assess water risks Method Please explain how these methods are used in your risk assessment Internal company knowledge Life Cycle Assessment Regional government databases Other: Industry Knowledge Noble Energy conducts long-range planning and life-cycle assessments for exploration and production activities using internal company knowledge, industry knowledge, and regional government databases to evaluate the effects of available water quality, water quantity, and water management on the organization. When evaluating water risk on regional, watershed, and asset scales, both physical and economic water scarcity are evaluated, and a water management is developed to mitigate identified water risks. The Company's analysis of water-related risks includes an information-gathering process, site surveys and sampling, environmental due diligence, participation in industry association work groups and stakeholder engagement. When developing a new site, the Company evaluates the regulatory framework, water availability and scarcity prior to exploration and production activities. Once a project is sanctioned, Noble Energy continually evaluates water risk to update its water management. W2.6 Which of the following contextual issues are always factored into your organization's water risk assessments?

15 Issues Choose option Please explain Current water availability and quality parameters at a local level Current water regulatory frameworks and tariffs at a local level Current stakeholder conflicts concerning water resources at a local level Current implications of water on your key commodities/raw materials Current status of ecosystems and habitats at a local level Current river basin management plans Current access to fully-functioning WASH services for all employees Estimates of future changes in water availability at a local level Estimates of future potential regulatory changes at a local level Estimates of future potential stakeholder conflicts at a local level Not relevant, explanation provided Noble Energy considers water quality and availability on a site-specific basis at facilities prior to construction and on an ongoing basis, as appropriate. The Company uses internal company knowledge, regional government databases, and available industry information. Because Noble Energy supplies water for its key service providers, this issue is addressed for facilities and suppliers. As appropriate, regulatory frameworks and tariffs are considered at the local level to ensure compliance and an adequate water supply for Noble Energy activities, both prior to the commencing activities and on an ongoing basis as changes to regulations and tariffs are identified. Because Noble Energy supplies water for its key service providers, this issue is addressed for facilities and suppliers. For all appropriate facilities, Noble Energy considers current stakeholder conflicts (e.g. competing uses, water quality concerns, general anti-hydraulic fracturing sentiments, etc.) and how to avoid or mitigate these concerns. Because Noble Energy supplies water for its key service providers, this issue is addressed for facilities and suppliers. Because Noble Energy supplies water for its key service providers, we already factor this water use into our footprint. Given that it is already addressed in other parts of our analysis, no additional risk is posed by water s to the key commodities on which they depend. As appropriate, Noble Energy considers the current status of ecosystems and habitats at a local level, through desktop and field surveys that use internal company knowledge, regional government databases, and other publically available knowledge from industry partners. Noble Energy considers river basin management plans in applicable areas and verifies operations fit within river basin plans by way of the facility s water management plan. These plans are reviewed regularly to address changes to a river basin management plan, when appropriate. As appropriate, Noble Energy ensures that adequate water is available for potable uses, sanitation and hygiene for each employee in its business units. As appropriate, Noble Energy estimates future changes in water availability and risk at a local level using internal company knowledge and regional government databases. Facilities are assessed using a life cycle assessment to evaluate water risk before commissioning and throughout the life of the project. Noble Energy evaluate future potential regulatory changes and their s on operations, as appropriate. Regulatory frameworks and tariffs are considered at the local level to ensure future compliance and an adequate water supply for planned and proposed Noble Energy activities. For all appropriate facilities, Noble Energy considers the potential for stakeholder conflicts (e.g. competing uses, water quality concerns, general anti-hydraulic fracturing sentiments, etc.) and how to mitigate potential concerns. These concerns are evaluated throughout the life of a project.

16 Issues Choose option Please explain Estimates of future implications of water on your key commodities/raw materials Estimates of future potential changes in the status of ecosystems and habitats at a local level Scenario analysis of availability of sufficient quantity and quality of water relevant for your operations at a local level Scenario analysis of regulatory and/or tariff changes at a local level Scenario analysis of stakeholder conflicts concerning water resources at a local level Scenario analysis of implications of water on your key commodities/raw materials Scenario analysis of potential changes in the status of ecosystems and habitats at a local level Other Not relevant, explanation provided Not relevant, explanation provided Not relevant, explanation provided Because Noble Energy supplies water for its key service providers, no additional risk is posed by water s to the key commodities on which they depend. As appropriate, Noble Energy considers future potential changes in the status of ecosystems and habitats throughout the life cycle of a project. As appropriate, Noble Energy uses internal company knowledge, information from industry partners, and regional government databases to conduct lifecycle assessments in order to evaluate multiple scenarios and options to meet the needs of the Company s planned and proposed activities. Noble Energy evaluate future potential regulatory changes and their s on operations, as appropriate. Regulatory frameworks and tariffs are considered at the local level to ensure future compliance and an adequate water supply for planned and proposed Noble Energy activities. For all appropriate facilities, Noble Energy considers the prospective nature of stakeholder conflicts (e.g. competing uses, water quality concerns, etc.) and how to mitigate potential concerns. Because Noble Energy supplies water for its key service providers, no additional risk is posed by water s to the key commodities on which they depend. As appropriate, Noble Energy considers scenario analysis of potential changes in the status of ecosystems and habitats at a local level to evaluate and mitigate potential s to a project throughout its lifecycle. No other issues are disclosed. W2.7 Which of the following stakeholders are always factored into your organization's water risk assessments?

17 Stakeholder Choose option Please explain Customers Employees Investors Local communities NGOs Other water users at a local level Regulators River basin management authorities Statutory special interest groups at a local level Suppliers Water utilities/suppliers at a local level Other Not relevant, explanation provided As appropriate, Noble Energy s water risk assessments involve analyzing and managing water risks that would reduce the company s ability to supply oil and natural gas or that would the company s competitiveness. Noble Energy s water risk assessments include employee safety, such as safety risks from flooding, as well as access to water for sanitation and health. As appropriate, Noble Energy s shareholder concerns, including those that could profitability and value, are factored into the organization s Environmental, Health, Safety and Regulatory (EHSR) and business unit risk assessments. As appropriate, Noble Energy considers local community concerns, such as water use and groundwater contamination, when assessing water risk and takes appropriate action to minimize s. Noble Energy engages with NGOs, where appropriate, to address concerns related to planning and operations. As appropriate, Noble Energy considers other users such as agricultural users, municipalities, species, and others and tries to reduce potential water resource conflicts with those users. As appropriate, Federal, state and local regulations are factored into Noble Energy water risk assessments for planning purposes and to ensure compliance with applicable laws and regulations. As appropriate, Noble Energy verifies operations fit within river basin plans, maintains compliance with local regulations and obtains permits when necessary, As appropriate, Noble Energy incorporates statutory special interest groups into water risk assessment when they are involved in initiatives that may Noble Energy planning and operations. Noble Energy provides water to key suppliers, such as drilling and completions service companies; therefore, Noble Energy suppliers are considered in water risk assessments, as appropriate. As appropriate, the Company considers water suppliers at a local level, such as municipalities and commercial suppliers, where Noble Energy does not own/control its water supply. As appropriate, Noble Energy also considers s to local users including water utilities/suppliers, and tries to reduce potential water resource conflicts with those users. No other stakeholders are disclosed. W2.8 Please choose the option that best explains why your organisation does not undertake a water-related risk assessment

18 Primary reason Please explain Further Information Module: Implications Page: W3. Water Risks W3.1 Is your organization exposed to water risks, either current and/or future, that could generate a substantive change in your business, operations, revenue or expenditure? Yes, direct operations and supply chain W3.2 Please provide details as to how your organization defines substantive change in your business, operations, revenue or expenditure from water risk Noble Energy considers a substantive change in our business as one that has the potential to adversely the operations or economics of development, one that could be detrimental to health, safety, environment, or one that could limit the Company s social license to operate. A substantive change may also positively operations by providing substantial cost savings, implementing new technology or providing efficiencies. For example, our operations and financial results could be significantly ed by adverse weather conditions in the areas we operate including: hurricanes, tropical storms, cyclones, windstorms, or superstorms which could affect our operations in areas such as Texas, deepwater Gulf of Mexico, Marcellus Shale or Eastern Mediterranean; winter storms and snow which could affect our operations in the DJ Basin and Marcellus Shale; severe droughts resulting in new restrictions on water usage in the DJ Basin, Marcellus Shale and Texas;

19 flooding, or increases in sea level, which could affect our operations in low-lying areas; harsh weather and rough seas, which could limit certain exploration activities; and other natural disasters. Any of these can result in loss of hydrocarbons, environmental pollution and other damage to our properties or the properties of others, or restricted access to our properties. W3.2a Please provide the number of facilities* per river basin exposed to water risks that could generate a substantive change in your business, operations, revenue or expenditure and the proportion this represents of total operations company-wide Country River basin Number of facilities exposed to water risk Proportion of total operations (%) Comment States of States of States of Other: South Platte River Other: Upper Ohio River Other: Rio Grande & Colorado Rivers This facility (the DJBU Facility) is defined as an entire business unit that covers a large geographical area and diverse operations that includes numerous wells and other infrastructure. Given the size and diversity of the assets within this facility, it is unlikely that all of the assets within the DJBU Facility would be affected by any one risk factor. This area has been subject to flooding in recent years, but is generally considered a drought-prone region. Although these risks could create a substantial on assets within this business unit, they are unlikely to the entire facility as a whole. This facility (the MBU Facility) is defined as an entire business unit that covers a large geographical area and diverse operations that includes numerous wells and other infrastructure. The primary risk in this business unit is the limited water management options available. However, given the size and diversity of the assets within this facility, it is unlikely that all of the assets within the MBU Facility would be affected by any one risk factor. Therefore, while each asset could be exposed to water risk, the risk would not be applicable to the facility as a whole. This facility (the PBU Facility) is defined as an entire business unit that covers a large geographical area and diverse operations that includes numerous wells and other infrastructure. Given the size and diversity of the assets within this facility, it is unlikely that all of the assets within the PBU Facility would be affected by any one risk factor. This area is generally

20 Country River basin Number of facilities exposed to water risk Proportion of total operations (%) Comment States of Other: Rio Grande & Nueces considered a drought-prone region. Although this risk could create a substantial on assets within this business unit, they are unlikely to the entire facility as a whole. This facility (the EFBU Facility) is defined as an entire business unit that covers a large geographical area and diverse operations that includes numerous wells and other infrastructure. Given the size and diversity of the assets within this facility, it is unlikely that all of the assets within the EFBU Facility would be affected by any one risk factor. This area is generally considered a drought-prone region. Although this risk could create a substantial on assets within this business unit, they are unlikely to the entire facility as a whole. W3.2b Please provide the proportion of financial value that could be affected at river basin level associated with the facilities listed in W3.2a Country River basin Financial reporting metric Proportion of chosen metric that could be affected within the river basin Comment States of States of States of Other: South Platte River Other: Upper Ohio River Other: Rio Grande & % global production capacity % global production capacity % global production capacity Given the size and diversity of the operations in this river basin, it is unlikely that any single risk factor could affect all of the production capacity encompassed by the entire DJBU Facility. Given the size and diversity of the operations in this river basin, it is unlikely that any single risk factor could affect all of the production capacity encompassed by the entire MBU Facility. Given the size and diversity of the operations in these river basins, it is unlikely that any single risk factor could affect all of the production capacity encompassed by the

21 Country River basin Financial reporting metric Proportion of chosen metric that could be affected within the river basin Comment States of Colorado Rivers Other: Rio Grande & Nueces % global production capacity 6-10 entire PBU Facility. Also note, this production capacity only includes production occurring after these assets were acquired by Noble Energy. Given the size and diversity of the operations in these river basins, it is unlikely that any single risk factor could affect all of the production capacity encompassed by the entire EFBU Facility. Also note, this production capacity only includes production occurring after these assets were acquired by Noble Energy. W3.2c Please list the inherent water risks that could generate a substantive change in your business, operations, revenue or expenditure, the potential to your direct operations and the strategies to mitigate them Country River basin Risk driver Potential Description of Timeframe Likelihood Magnitude of potential financial Response Costs of response Details of and costs States of Other: US Onshore Physical- Increased water scarcity Higher operating costs Portions of Noble Energy s operations are in areas of physical water scarcity. Should scarcity increase, the Company could face possible 4-6 years Unknown Medium Increased investment in new technology Not reported Noble Energy is vetting and testing new technology and innovative ways to reduce freshwater use in its operations. For example,

22 Country River basin Risk driver Potential Description of Timeframe Likelihood Magnitude of potential financial Response Costs of response Details of and costs States of Other: Global Regulatory- Regulatory uncertainty Delays in permitting restrictions on groundwater and surface water withdrawals leading to potential interruptions in its operations or increased operational costs related to sourcing water from additional suppliers. Noble Energy faces regulatory risks related to its operations. For example, in some areas where Noble Energy 4-6 years Probable Medium Engagement with public policy makers Not reported Noble Energy is researching and implementing treatment technologies that help treat, reuse and recycle flowback and produced waters. The Company is also works with midstream entities, such as Noble Midstream to evaluate and optimize water infrastructure to mitigate localized water scarcity that could operations. To manage this risk, Noble Energy actively monitors current and proposed legislation that could affect its

23 Country River basin Risk driver Potential Description of Timeframe Likelihood Magnitude of potential financial Response Costs of response Details of and costs States of Other: US Onshore Physical- Pollution of water source Brand damage operates, there is an increasing trend for more regulatory oversight. Should these regulations be passed, the cost of meeting regulatory requirements or the time required to obtain regulatory approvals may have an adverse on Noble Energy. This and additional uncertainty around water procurement and disposalrelated regulation may cause delays in operations or increase the cost of doing business. Noble Energy faces risks should its operations 1-3 years Unknown Mediumhigh Promote best practice and Not reported operations, including that which deals specifically with water. The Company engages with public policy makers, where appropriate to understand potential s of regulatory changes and to mitigate those changes. The Company also actively measures and monitors its own water usage to reduce water use where possible. Noble Energy promotes best practices and awareness in

24 Country River basin Risk driver Potential Description of Timeframe Likelihood Magnitude of potential financial Response Costs of response Details of and costs States of Other: US Onshore Reputational- Community opposition Reputational- Negative media coverage Decrease in shareholder value experience unintentional releases or water contamination. In addition to environmental and health s, Noble Energy (and the industry as a whole) could suffer reputational damage should water contamination occur. Reputational damage could Noble Energy s ability to do business in certain areas, decrease demand for its products and negatively share price. Public perception of the hydraulic fracturing process, 1-3 years Unknown Lowmedium awareness Other: External stakeholder engagement & new technology development The cost to join SPWRAP in the first year (include backpayments to be a member in good standing from the program s start date) was approximately $100,000, and membership will require a small annual fee. our operations to reduce the number incidents that could negatively groundwater and surface water. Noble Energy is a member of Coloradans for Responsible Energy Development (CRED), whose mission is to provide scientifically sound information about fracking to the public. Noble Energy is also

25 Country River basin Risk driver Potential Description of Timeframe Likelihood Magnitude of potential financial Response Costs of response Details of and costs perceived water use, and the use of underground injection wells exposes Noble Energy to reputational risks. researching and implementing technologies that will reduce the Company s reliance on injection wells. The Company has joined the SPWRAP to offset the Company s water usage in the DJ Basin. This voluntary program provides a benefit to endangered species and communities, and increases the Company s engagement with regulatory agencies, thereby benefiting the Company s social license to operate.

26 W3.2d Please list the inherent water risks that could generate a substantive change in your business operations, revenue or expenditure, the potential to your supply chain and the strategies to mitigate them Country River basin Risk driver Potential Description of Timeframe Likelihood Magnitude of potential financial Response Costs of response Details of and costs States of Other: Rio Grande, Colorado, & Nueces Physical- Increased water scarcity Supply chain disruption Portions of Noble Energy s operations are in areas of physical water scarcity. Should scarcity increase, restrictions on groundwater and surface water withdrawals could lead to interruptions in its operations or increased operational costs related to sourcing water from additional suppliers. 1-3 years Probable Medium Infrastructure investment Infrastructure investment is approached in two ways. Noble Energy may directly invest the capital for storage, piping, and other infrastructure, or the Company may work with landowners or commercial interests to buy capacity in existing or planned infrastructure and pay fees for their use as operational expenses. Noble Energy is evaluating the water management for operations in the Permian Basin and Eagle Ford Shale, which were acquired in The Company is evaluating water risk, including water scarcity and works with midstream companies to plan infrastructure, development, and operations in order to mitigate these risks.

27 Country River basin Risk driver Potential Description of Timeframe Likelihood Magnitude of potential financial Response Costs of response Details of and costs States of Other: All U.S. Regulatory- Regulation of discharge quality/volumes leading to higher compliance costs Other: Limited injection capacity Higher operating costs An increase in public concern and scrutiny over underground injection wells and an increase in development of shale plays in the U.S. could lead to a decrease in the available capacity of disposal wells. This reduced capacity can lead to increased costs. 1-3 years Highly probable Medium Increased investment in new technology Not reported Noble Energy is evaluating alternatives to disposal via underground injection, including reuse and recycling of wastes. W3.2e Please choose the option that best explains why you do not consider your organization to be exposed to water risks in your direct operations that could generate a substantive change in your business, operations, revenue or expenditure

28 Primary reason Please explain W3.2f Please choose the option that best explains why you do not consider your organization to be exposed to water risks in your supply chain that could generate a substantive change in your business, operations, revenue or expenditure Primary reason Please explain W3.2g Please choose the option that best explains why you do not know if your organization is exposed to water risks that could generate a substantive change in your business operations, revenue or expenditure and discuss any future plans you have to assess this Primary reason Future plans Further Information Page: W4. Water Opportunities W4.1

29 Does water present strategic, operational or market opportunities that substantively benefit/have the potential to benefit your organization? Yes W4.1a Please describe the opportunities water presents to your organization and your strategies to realize them Country or region Opportunity Strategy to realize opportunity Estimated timeframe Please explain States of Cost savings Noble Energy is focused on securing independent water supplies to lower costs, reduce uncertainty and solidify social license to operate. 1-3 years States of Social licence to operate Noble Energy has joined the South Platte Water-Related Activities Program (SPWRAP) to offset the Company s water usage in the DJ Basin. SPWRAP is a Colorado non-profit corporation that assists in the recovery of species listed as threatened or endangered under the Endangered Species Act (ESA) through the development and operation of the Colorado Program component of the Platte River Recovery Implementation Program. This voluntary program provides a benefit to endangered species and communities, and increases the Company s engagement with regulatory agencies, thereby benefiting the Company s social license to operate. The cost to join SPWRAP in the first year (include back-payments to become a member in good standing from the program s start date) was approximately $100,000, and membership will require a small annual fee. Noble Energy is committed to water recycling and reuse, implementing best management practices (BMPs) in the industry, and practicing environmental stewardship. The company is working to increase recycling capacity and is testing innovative technologies to lower the cost of reuse and recycling. Water recycling reduces freshwater consumption and decreases downhole disposal volumes, which provide benefits to neighboring communities. 1-3 years States of Innovation 1-3 years Equatorial Guinea Improved community relations Noble Energy s water supply is developed from a previously contaminated aquifer. Using this water instead of a new water supply mitigates potential conflicts between the Company and local water users and communities. >6 years

30 W4.1b Please choose the option that best explains why water does not present your organization with any opportunities that have the potential to provide substantive benefit Primary reason Please explain W4.1c Please choose the option that best explains why you do not know if water presents your organization with any opportunities that have the potential to provide substantive benefit Primary reason Please explain Further Information Module: Accounting Page: W5. Facility Level Water Accounting (I) W5.1 Water withdrawals: for the reporting year, please complete the table below with water accounting data for all facilities in your answer to W3.2a

31 Facility reference number Country River basin Facility name Total water withdrawals (megaliters/year) at this facility How does the total water withdrawals at this facility compare to the last reporting year? Please explain Facility 1 Facility 2 Facility 3 Facility 4 States of States of States of States of Other: South Platte River Other: Upper Ohio River Other: Rio Grande & Colorado Rivers Other: Rio Grande & Nueces DJ Basin 4845 Higher Marcellus Shale Permian Basin Eagle Ford Shale 2390 Much lower This is our first year of measurement This is our first year of measurement Lower activity levels resulted in lower freshwater consumption, but production remained high resulting in a larger volume of produced water in 2015 than in Lower activity levels in 2015 resulted in decreased water consumption compared to These assets were acquired on July 20, This information excludes withdrawals occurring before the assets were under Noble Energy s operational control. These assets were acquired on July 20, This information excludes withdrawals occurring before the assets were under Noble Energy s operational control. Further Information Page: W5. Facility Level Water Accounting (II) W5.1a Water withdrawals: for the reporting year, please provide withdrawal data, in megaliters per year, for the water sources used for all facilities reported in W5.1

32 Facility reference number Fresh surface water Brackish surface water/seawater Rainwater Groundwater (renewable) Groundwater (nonrenewable) Produced/process water Municipal water Wastewater from another organization Comment Facility Facility Facility Facility W5.2 Water discharge: for the reporting year, please complete the table below with water accounting data for all facilities in your answer to W3.2a Facility reference number Total water discharged (megaliters/year) at this facility How does the total water discharged at this facility compare to the last reporting year? Please explain Facility Higher Facility Much higher Facility Facility This is our first year of measurement This is our first year of measurement Although activity levels decreased, production increased, resulting in greater volumes of produced water that were disposed. Lower activity levels resulted in a decreased demand for recycled produced water. As a result, more water was disposed of in injection wells in 2015 than in These assets were acquired on July 20, This information excludes discharges occurring before the assets were under Noble Energy s operational control. These assets were acquired on July 20, This information excludes discharges occurring before the assets were under Noble Energy s operational control. W5.2a