CDP. Module: Introduction. Page: W0. Introduction. CDP 2015 Water 2015 Information Request W0.1. Introduction

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1 CDP CDP 2015 Water 2015 Information Request Apache Corporation Module: Introduction Page: W0. Introduction W0.1 Introduction Please give a general description and introduction to your organization. Apache Corporation is an independent oil and gas exploration & production company formed in 1954 that endeavors to find and produce energy in an innovative, safe, environmentally-responsible and profitable manner. Our products are oil, gas and natural gas liquids that are generally sold to supplier networks instead of directly to consumers. With current exploration and operations in five countries: the United States, Canada, the United Kingdom sector of the North Sea, Egypt and Australia, Apache has created diverse opportunities for growth through oil and gas exploration activities as well as development in mature oil and gas basins. Apache also pursues additional exploration opportunities in other countries that may result in hydrocarbon discoveries. At year-end, 2014, Apache employed nearly 5,403 people worldwide. 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 Wed 01 Jan Wed 31 Dec 2014 W0.3

2 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 financial control is exercised W0.4 Exclusions Are there any geographies, facilities or types of water inputs/outputs within this boundary which are not included in your disclosure? No W0.4a Exclusions Please report the exclusions in the following table Exclusion Please explain why you have made the exclusion Further Information Module: Current State Page: W1. Context W1.1

3 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 Neutral Important Not important at all Not important at all Apache minimizes the consumption of freshwater in operations including hydraulic fracturing. Where feasible, technologies and techniques are employed that facilitate the use of water with inferior quality. Volumetrically, the most important alternative sources are brackish / salt water aquifer systems. These occur in many areas such as parts of the Permian basin where we utilize brackish water as a base fluid for hydraulic fracturing operations, and have significantly reduced the use of fresh water. A review of the supply chain has not been conducted. It is believed that water risk is not material for our suppliers. Nearly all the water used for enhanced oil recovery methods, such as waterfloods, is from either produced, recovered and recycled water from production operations. Waterflooding is a common technique to extend the productive life of large mature fields. Water is repeatedly recycled between the reservoir and the surface. A review of the supply chain has not been conducted. However, it is believed that water risk is not material for our suppliers. 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 Water withdrawals are required to be monitored and metered. Water withdrawals- volume by Water withdrawals are metered per regulations or to facilitate payment to the water sources owner/supplier. Water discharges- total volumes 1-25 Regulations require the metering of water that is discharged in most of Apache's operating

4 Water aspect % of sites/facilities/operations Please explain regions. The number of underground injection facilities is small as compared to the number of producing facilities. Regulations require the metering of water that is discharged in most of Apache's operating Water discharges- volume by 1-25 regions. The number of injection facilities is small as compared to the number of producing destination facilities. Water discharges- volume by Injected water undergoes some treatment, such as filtration, though the treatment types and Less than 1% treatment method volumes are not captured. Water discharge quality dataquality by standard effluent parameters Less than 1% Very few facilities discharge to surface water though they all monitor effluent quality before discharging. Occasionally, water that is injected for disposal is also tested using water quality parameters Water consumption- total volume Less than 1% Water consumption is not directly measured at any facility. Facilities providing fully-functioning WASH services for all workers Apache workers have continual access to fully-functioning WASH services. 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 Fresh surface water 3231 Higher Brackish surface water/seawater 2233 About the same Rainwater 0 Not applicable Regions whose increased production in 2014 versus 2013 also saw a total 70 percent increase of surface water use from Apache's Permian Region withdrawals brackish water from the non-potable Santa Rosa aquifer in Texas. Apache operations do not use rainwater as this is not a dependable resource in most of our regions.

5 Source Quantity (megaliters/year) How does total water withdrawals for this source compare to the last reporting year? Comment Groundwater - renewable 7960 Lower Groundwater - nonrenewable 0 Not applicable Produced/process water About the same Municipal supply 1458 Higher Wastewater from another organization 0 Not applicable Total About the same Apache's Permian Region has increased its produced water recycling operation; thereby decreasing its need for renewable groundwater sources by 13 percent from Level of activity increased in regions requiring municipal water for offshore personnel. Municipal water is used for drinking, cooking, showers and washing. 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 Higher Brackish surface water/seawater Higher Groundwater 4551 Lower 2014 saw an increase in discharge to storage/waste lagoons and surface water. North Sea offshore wells saw a higher water cut in 2014 resulting in a 9 percent increase of discharge to seawater. A reduction in producing offshore operations led to a 9 percent decrease in discharge volumes which were injected for disposal.

6 Destination Quantity (megaliters/year) How does total water discharged to this destination compare to the last reporting year? Comment Municipal treatment plant 894 Higher 2014 saw an increase in municipal treatment discharge from Total Higher 2014 saw a 6 percent increase in total discharge from 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 2014 saw both an increase of withdrawal and discharge volumes. However, as 2014's recycle/reuse amount was 12 percent lower than 2013, Apache's water consumption volumes increased. W1.3 Do you request your suppliers to report on their water use, risks and/or management? W1.3a

7 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 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 W1.4 Has your organization experienced any detrimental s related to water in the reporting period? Yes W1.4a Please describe the detrimental s experienced by your organization related to water in the reporting year

8 Country River basin Impact indicator Impact Description of Length of Overall financial Response strategy Description of response strategy United States of America United States of America RIVER BASINS RIVER BASINS Other: Public Perception Rep- Negative media coverage Other: Increased Scrutiny Other: Increased Scrutiny The general population is increasingly interested in water related issues primarily centered on water supply and quality. Operators, including Apache, using hydraulic fracturing have come under scrutiny for water withdrawals and potential groundwater contamination. The perceived environmental harm has generated negative press and increased examination of operations. The general population has become increasingly interested in an increasing number of earthquakes in Oklahoma and Texas. Reports link these events with water injection activities. Current Low Current Low Other: Increased transparency Other: Increased transparency Apache has been proactive by increasing the transparency of its hydraulic fracturing activities. Apache disclosed per-well fracturing data concerning its US operations to FracFocus ( before it was required by law, in an effort to answer stakeholder requests for information and continues the practice. In addition, Apache works with a coalition of investment advisory firms and advocacy organizations to produce information for the "Disclosing the Facts" report. The goal of this report is to increase transparency with regards to hydraulic fracturing. Using this report's guidelines, Apache has taken positive steps to increase transparency on the Apache website for a variety of topics including toxic chemical use, water management, air emissions, community s, as well as management and accountability. These actions have helped to mitigate potential negative public perception. Apache continues to make an effort to increase transparency and broaden understanding of hydraulic fracturing within the general population. Apache has reviewed its water injection practices and third-party injection companies to ensure practices are within regulated limits.

9 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 W2.2 Please select the options that best describe your procedures with regard to assessing water risks

10 Risk assessment procedure Coverage Scale Please explain Water risk assessment undertaken independently of other risk assessments Direct operations All facilities Due to the various geographies Apache operates in, risks associated with water are assessed by Apache's individual operating areas in context with local regulations and water constraints. 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 Region Unknown Each of Apache's operating areas employ constant water usage monitoring in addition to annual risk assessments. W2.4 Have you evaluated how water risks could affect the success (viability, constraints) of your organization's growth strategy? Not evaluated W2.4a Please explain how your organization evaluated the effects of water risks on the success (viability, constraints) of your organization's growth strategy?

11 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 strategy, and are there any plans in place to do so in the future? Main reason Current plans Timeframe until evaluation Comment Important but not any immediate business priority No Next months Water use is expected to decline in 2015 due to commodity pricing. This reduces emphasis on water planning and risk evaluation. 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 Apache uses internal company knowledge from personnel in operating areas that have a recognized greater potential of water risk. W2.6 Which of the following contextual issues are always factored into your organization's water risk assessments?

12 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 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 Relevant, included Relevant, included Relevant, included for some facilities/suppliers Not relevant, explanation provided Not relevant, explanation provided Not evaluated Relevant, included Not relevant, explanation provided Relevant, not yet included Relevant, not yet included Not relevant, explanation provided Not relevant, explanation provided Relevant, not yet included Relevant, not yet included Water availability and quality are important factors for exploration activities. Apache complies with local regulatory requirements and pays tariffs if required. In certain areas, Apache Corporation works with individual stakeholders as necessary. Water availability and quality are not believed to materially our key commodities and raw materials as produced water reinjection has been used. Apache's current water withdrawal, recycling and discharge practices have not been shown to materially alter the net water balance of local ecosystems and habitats. Apache workers have continual access to fully-functioning WASH services. Local water scarcity does not represent a strategic risk as alternative water resources are typically available at low cost and can be transported to our sites. Apache maintains a balance of meeting existing regulatory standards and economic drivers; however, personnel in both Corporate and operating areas keep updated on future potential changes. Although Apache expects water challenges to become a more significant issue in the future, our approach is to proactively negotiate with stakeholders to avoid conflict. Water availability and quality are not believed to materially our key commodities and raw materials. In addition, Apache's produced water recycling operations allows another water source for waterflood. Apache's current water withdrawal, recycling and discharge practices have not been shown to materially alter the net water balance of local ecosystems and habitats. Local water scarcity does not represent a strategic risk as alternative water resources are typically available at low cost and can be transported to our drilling sites. However, insufficient quantity of local water for our hydraulic fracturing operations would result in expensive countermeasures and may also be prohibitive for waterflood. Regulatory changes typically result in more stringent control of water resources; including fresh water. Most changes do not have an adverse on production and tend to decrease surface discharge which reduces long-term environmental obligations.

13 Issues Choose option Please explain 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 Relevant, not yet included Not relevant, explanation provided Not relevant, explanation provided Local water scarcity does not represent a strategic risk as alternative water resources are typically available at low cost and can be transported to our sites. Water availability and quality are not believed to materially our key commodities and raw materials. Apache's current water withdrawal, recycling and discharge practices have not been shown to materially alter the net water balance of local ecosystems and habitats. W2.7 Which of the following stakeholders are always factored into your organization's water risk assessments? Stakeholder Choose option Please explain Customers Not relevant, explanation provided Apache's water usage does not our customers. Employees Relevant, included Apache must ensure fresh water supply for employee use. Investors Relevant, included Apache monitors and reports water usage to facilitate transparency for investors. Local communities Relevant, included for some facilities/suppliers In water-scarce areas, Apache ensures stakeholder concerns are managed. NGOs Relevant, included Apache provides data to water interest groups through public reporting such as Fracfocus.org and CDP. Other water users at a local Relevant, included for some level facilities/suppliers In water-scarce areas, Apache ensures stakeholder concerns are managed. Regulators Relevant, included Apache ensures regulator concerns are managed. River basin management authorities Not evaluated

14 Stakeholder Choose option Please explain Statutory special interest groups at a local level Suppliers Water utilities/suppliers at a local level Other Relevant, included Not relevant, explanation provided Relevant, included Apache ensures special interest group concerns are managed. Water availability and quality are not believed to materially our key commodities and raw materials. The use of local water resources is often included in Apache operation and exploration programs. Apache strives to minimize the use of potable water in its operations. W2.8 Please choose the option that best explains why your organisation does not undertake a water-related risk assessment 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?

15 Yes, direct operations only W3.2 Please provide details as to how your organization defines substantive change in your business, operations, revenue or expenditure from water risk For exploration, a substantive change is defined as any change that reduces the rate of return below the threshold that prevents the project from occurring. In terms of a producing well, a substantive change would increase the operating expense or lower production (i.e. if waterflood was prohibited) to the point that margins are no longer sufficient to continue production. 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 of total operations this represents Country River basin Number of facilites Proportion of total operations exposed to risk within river basin (%) Comment Canada Churchill River 0 Less than 1% Canada Mackenzie River 0 Less than 1% Canada Nelson River Egypt Nile 0 Less than 1% United Kingdom Other: Offshore 0 Less than 1% United States of America Bravo United States of America Brazos River United States of America Colorado River (Caribbean Sea) United States of America Mississippi River United States of America Nueces River United States of America San Antonio River

16 Country River basin Number of facilites Proportion of total operations exposed to risk within river basin (%) Comment United States of America Trinity River (Texas) 0 Less than 1% 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 Canada Churchill River barrels of oil equivalent (BOE) Less than 1% Canada Mackenzie River barrels of oil equivalent (BOE) Less than 1% Canada Nelson River barrels of oil equivalent (BOE) Egypt Nile barrels of oil equivalent (BOE) Less than 1% United Kingdom Other: Offshore barrels of oil equivalent (BOE) Less than 1% United States of America Bravo barrels of oil equivalent (BOE) United States of America Brazos River barrels of oil equivalent (BOE) United States of America Colorado River (Caribbean Sea) barrels of oil equivalent (BOE) United States of America Mississippi River barrels of oil equivalent (BOE) United States of America Nueces River barrels of oil equivalent (BOE) 1-5 United States of America San Antonio River barrels of oil equivalent (BOE) United States of America Trinity River (Texas) barrels of oil equivalent (BOE) Less than 1% W3.2c

17 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 strategy Costs of response strategy Details of strategy and costs Canada Other: Churchill, Mackenzie, and Nelson Regulatory- Mandatory water efficiency, conservation, recycling or process standards Higher operating costs Changes and regulations restricting access to water resources. Such changes could result in increased exploration and operating costs. Unknown Probable Unknown Engagement with public policy makers Low Apache actively monitors the legislative landscape in order to anticipate and keep current with changes in water regulations. Apache pursues opportunities to reduce its reliance on potable water sources wherever possible and practical to do so, wherever there is high demand or environmental sensitivities associated with the local water source. This strategy reduces the likelihood of potential future restrictions. Canada Other: Regulatory- Higher In onshore 4-6 years Probable Unknown Engagement Low Apache has

18 Country River basin Risk driver Potential Description of Timeframe Likelihood Magnitude of potential financial Response strategy Costs of response strategy Details of strategy and costs United States of America Churchill, Mackenzie, and Nelson Other: Bravo, Brazos, Colorado, Mississippi, Higher water prices Regulatory- Higher water prices operating costs Higher operating costs operations, high demand for water resources inflates prices and legislative changes restrict access to these resources. Changes in prices and restrictions on accessing water resources would predominantly the cost of land based drilling activities. In onshore operations, high demand for water resources inflates prices 4-6 years Probable Unknown with suppliers Engagement with suppliers Low invested in technology to increase recycling and reuse of water in our drilling operations and to utilize other water sources that are not in high demand, reducing our exposure to potential future legislative changes. This activity address multiple waterrelated risks in that it decreases vulnerability to price fluctuations and any restrictions to access of the source, providing the assurance of a constant supply. Apache has invested in technology to increase recycling and

19 Country River basin Risk driver Potential Description of Timeframe Likelihood Magnitude of potential financial Response strategy Costs of response strategy Details of strategy and costs United States of America Nueces, San Antonio & Trinity Other: Bravo, Brazos, Colorado, Mississippi, Nueces, San Antonio & Trinity Regulatory- Mandatory water efficiency, conservation, recycling or process standards Higher operating costs and legislative changes restrict access to these resources. Changes in prices and restrictions on accessing water resources would predominantly the cost of land based drilling activities Changes in regulations restricting access to water resources. Such changes could result in increased operating costs Unknown Probable Unknown Engagement with public policy makers Low reuse of water in our drilling operations and to utilize other water sources that are not in high demand, reducing our exposure to potential future legislative changes. This activity address multiple waterrelated risks in that it decreases vulnerability to price fluctuations and any restrictions to access of the source, providing the assurance of a constant supply. Apache actively monitors the legislative landscape in order to anticipate and keep current with changes in water regulations and

20 Country River basin Risk driver Potential Description of Timeframe Likelihood Magnitude of potential financial Response strategy Costs of response strategy Details of strategy and costs United States of America Other: Bravo, Brazos, Colorado, Mississippi, Nueces, San Antonio & Trinity Reputational- Community opposition Other: Unfavorable public perception mainly in onshore operations. Methods of water use, sources of water, consumption volumes and potential contamination are issues of interest to the public, media and regulatory bodies in areas where groundwater is Current-up to 1 year Probable Unknown Engagement with community Low pursues opportunities to reduce its reliance on potable water sources wherever possible and practical to do so, wherever there is high demand or environmental sensitivities associated with the local water source. This strategy reduces the likelihood of potential future restrictions. Fears of the unknown and unsubstantiated facts are large drivers of public perception. Apache counteracts the unknown by voluntarily disclosing water volumes and fracture stimulation information to

21 Country River basin Risk driver Potential Description of Timeframe Likelihood Magnitude of potential financial Response strategy Costs of response strategy Details of strategy and costs United States of America Other: Bravo, Brazos, Colorado, Mississippi, Nueces, San Antonio & Trinity Physical- Inadequate infrastructure Transport disruption used for multiple purposes. These issues are especially visible and important in areas where hydraulic fracturing is used. Perceived to groundwater resources by Apache would result in unfavorable public perception. A proportion of the water volume required for Apache operations is supplied by tanker trucks. As demand for water has increased, the number of trucks needed and the rise in truck traffic has put a strain on Current-up to 1 year Probable Unknown Increased capital expenditure Medium FracFocus.org, increasing the transparency of our operations, and offering educational material to the general public in the form of web posting and participation in community events. Apache aims to obtain its water through the most favorable and available methods. Alternative methods, outside of trucking water, are considered when accessible.

22 Country River basin Risk driver Potential Description of Timeframe Likelihood Magnitude of potential financial Response strategy Costs of response strategy Details of strategy and costs the transportation infrastructure. This has the potential to limit the volume of water available at specific operational sites and cause disruptions in steady water supply. 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 strategy Costs of response strategy Details of strategy and costs W3.2e

23 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 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 Other: The supply chain is not considered at risk due to water related issues because the materials Apache uses are in relative abundance in our operating areas. The physical items required for oil and gas explorations are typically unaffected by water issues such as a drought or declining water tables. 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

24 Further Information Page: W4. Water Opportunities W4.1 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 Companywide Improved water efficiency Apache will continue to practice environmental stewardship by supporting efforts that decrease water use and increase operational efficiency. Current-up to 1 year As Apache continues to seek, research, and implement innovative water reuse and recycling technologies, our reliance on competing potable water sources will decrease. This will reduce stakeholder concerns over drilling activity and potable groundwater s and lead to higher efficiency. 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

25 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 included in your answer to W3.2a

26 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 the change if substantive Facility 1 Facility 2 Australia Canada RIVER BASINS RIVER BASINS Australia Region (offshore) 2911 Lower Canada Region Lower Facility 3 Egypt Nile Egypt Region Higher Facility 4 Facility 5 United Kingdom United States of America RIVER BASINS RIVER BASINS United Kingdom Region (North Sea offshore) United States (Alaska, Central, Gulf of Mexico, Gulf Coast & Permian regions) Lower Higher An offshore platform was cut from production in 2014, resulting in a 65 percent overall withdrawal decrease from Two areas were divested in 2014 leading to a 10 percent decrease in withdrawal volumes. In addition, two areas had no drilling or completions activities in Production has declined from previous years, thereby requiring additional non-potable water resources to be injected to promote production withdrawal volumes have increased by 16 percent as compared to This region saw increased production downtime in 2014, leading to a 5 percent decrease in water withdrawals. Increased operations in the Gulf Coast region as well as increased use of recycled brackish water in the Permian region led to an 8 percent withdrawal increase in 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

27 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 Facility W5.2 Water discharge: for the reporting year, please complete the table below with water accounting data for all facilities included 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 the change if substantive W5.2a Water discharge: for the reporting year, please provide water discharge data, in megaliters per year, by destination for all facilities reported in W5.2

28 Facility reference number Fresh surface water Municipal Treatment Plant Seawater Groundwater Comment Facility Facility Facility Facility Facility W5.3 Water consumption: for the reporting year, please provide water consumption data for all facilities reported in W3.2a Facility reference number Consumption (megaliters/year) How does this compare to the last reporting year? Please explain the change if substantive Facility 1 54 Lower Facility Much higher Facility Much lower Facility Lower Facility Much higher A major offshore platform no longer produced and discharged water as compared to The difference between 2014's withdrawal and discharge volumes resulted in an overall 50 percent water consumption volume decrease as compared to Recycling operations decreased; thereby the region needed to utilize more of its withdrawal volumes. Due to these changes, water consumption volumes saw a 400 percent increase as compared to 2013 volumes. As oil production has declined, less produced water has been available and a greater percentage has been recycled. Overall, this has decreased water consumption percentage as compared to The UK operating region has increased the amount of discharged water within the past year due to higher volumes of produced water discharges. Slight increases of water withdrawals have intertwined with an overall decrease of the region's recycling/reuse program in This has caused an overall increase in water consumption.

29 W5.4 For all facilities reported in W3.2a what proportion of their water accounting data has been externally verified? Water aspect % verification What standard and methodology was used? Water withdrawals- total volumes Water withdrawals- volume by sources Water discharges- total volumes Water discharges- volume by destination Water discharges- volume by treatment method Water discharge quality data- quality by standard effluent parameters Water consumption- total volume Not verified Not verified Not verified Not verified Not verified Not verified Not verified Further Information Module: Response Page: W6. Governance and Strategy W6.1 Who has the highest level of direct responsibility for water within your organization and how frequently are they briefed?

30 Highest level of direct responsibility for water issues Frequency of briefings on water issues Comment Senior Manager/Officer Sporadic-as important matters arise The environment manager responsible for corporation wide water management reports to the vice president of HSSE, who reports directly to the president and CEO of the company. This facilitates communication of water related issues to the highest level of decision making within the company. Each operating area is solely responsible for water-related decisions. W6.2 Is water management integrated into your business strategy? Yes W6.2a Please choose the option(s) below that best explain how water has positively influenced your business strategy Influence of water on business strategy Please explain Establishment of sustainability goals Introduction of water management KPIs Water resource considerations are factored into location planning for new operations Tighter operational performance standards As part of our goal to be both a sustainable and environmentally responsible company, Apache seeks to establish and maintain sustainability goals regarding water. Apache, as well as its shareholders, is committed to operating in each of our regions while avoiding any detrimental s to local water resources. Water management KPIs help to promote this vision. Apache assesses each of our potential operating locations from both an economical and environmental perspective. This environmental evaluation considers existing water resource limitations in the potential location. By creating tighter operational performance standards with regards to water, Apache's operating regions have subsequently increased the amount of recycle/reuse water in their operations. This has decreased the amount of

31 Influence of water on business strategy Please explain water we consume. W6.2b Please choose the option(s) below that best explains how water has negatively influenced your business strategy Influence of water on business strategy Please explain Increased capital expenditure Operations that are not able to access local water would need to acquire water resources from other locations. This strategy, in turn, would increase operation costs. W6.2c Please choose the option that best explains why your organization does not integrate water management into its business strategy and discuss any future plans to do so Primary reason Please explain W6.3 Does your organization have a water policy that sets out clear goals and guidelines for action?

32 No W6.3a Please select the content that best describes your water policy (tick all that apply) Content Please explain why this content is included W6.4 How does your organization's water-related capital expenditure (CAPEX) and operating expenditure (OPEX) during the most recent reporting period compare to the previous reporting period? Water CAPEX (+/- % change) Water OPEX (+/- % change) Motivation for these changes Apache Corporation does not specifically measure CAPEX and OPEX for water. We have initiated several projects to conserve existing water sources and reuse/recycle the water. For example, many of our operations have begun to use reverse osmosis units, allowing operations to return surface water to the water cycle without harming the surrounding environment. Further Information Page: W7. Compliance

33 W7.1 Was your organization subject to any penalties, fines and/or enforcement orders for breaches of abstraction licenses, discharge consents or other water and wastewater related regulations in the reporting year? No W7.1a Please describe the penalties, fines and/or enforcement orders for breaches of abstraction licenses, discharge consents or other water and wastewater related regulations and your plans for resolving them Facility name Incident Incident description Frequency of occurrence in reporting year Financial Currency Incident resolution W7.1b What proportion of your total facilities/operations are associated with the incidents listed in W7.1a W7.1c Please indicate the total financial s of all incidents reported in W7.1a as a proportion of total operating expenditure (OPEX) for the reporting year. Please also provide a comparison of this proportion compared to the previous reporting year

34 Impact as % of OPEX Comparison to last year Further Information Page: W8. Targets and Initiatives W8.1 Do you have any company wide targets (quantitative) or goals (qualitative) related to water? No W8.1a Please complete the following table with information on company wide quantitative targets (ongoing or reached completion during the reporting period) and an indication of progress made Category of target Motivation Description of target Quantitative unit of measurement Base-line year Target year Proportion of target achieved, % value W8.1b Please describe any company wide qualitative goals (ongoing or reached completion during the reporting period) and your progress in achieving these

35 Goal Motivation Description of goal Progress W8.1c Please explain why you do not have any water-related targets or goals and discuss any plans to develop these in the future Further Information Module: Linkages/Tradeoff Page: W9. Managing trade-offs between water and other environmental issues W9.1 Has your organization identified any linkages or trade-offs between water and other environmental issues in its value chain? No W9.1a Please describe the linkages or trade-offs and the related management policy or action

36 Environmental issues Linkage or trade-off Policy or action Further Information Module: Sign Off Page: Sign Off W10.1 Please provide the following information for the person that has signed off (approved) your CDP water response Name Job title Corresponding job category Laura Espinoza Environmental, Health and Safety Specialist Environment/Sustainability manager W10.2 Addressing water risks effectively, in many instances, requires collective action. CDP would like to support you in finding potential partners that are also working to tackle water challenges in the river basins you report against. Please select if your organization would like CDP to transfer your publicly disclosed risk and drivers and response strategy data from questions W1.4a, W3.2b, W3.2c, W4.1a and W8.1b to the United Nations Global Compact Water Action Hub. No Further Information

37 CDP 2015 Water 2015 Information Request