Communities

Engaging With Communities, Providing Local Benefits

Our Approach

We openly communicate with local community members to make sure they have access to information on our projects and business activities. Through community consultations, we have meaningful conversations to understand local perspectives and to ensure they are taken into account in our decision making. We do this early in the process and frequently, because the opinions and concerns of our stakeholders matter. We also invest in local projects and initiatives that benefit the communities wherever we operate.

New Global Community Relations Policy

Our new GCRP marks an important evolution in our commitment to working with our local communities. In particular, when working with communities, we commit to engaging them in a fair and open discussion of our activities and addressing their concerns – this is the foundation of our new GCRP.

Approved in late 2010 and introduced in early 2011, the policy outlines our objectives, which include respecting the rights and interests of indigenous and tribal communities, understanding their cultural needs, finding ways for communities to share in the economic benefits of oil and gas development, and meeting the expectation that we will do no harm.

The policy underwent extensive review by key internal and external stakeholders, including consultation with companies, civil society organizations and experts in indigenous rights working within governments. Prior to crafting the policy, Talisman commissioned a report by Washington-based Foley Hoag, an internationally renowned legal and corporate social responsibility consultancy, on the issue of free, prior and informed consent (FPIC) for indigenous communities. Guidance was provided by the World Resources Institute and several other expert organizations and individuals.

Our new policy moves us to a more systematic approach for gaining the support of communities. Incorporating the broad FPIC principles means we will work with communities, at the earliest stages of development, to gain support for the work we plan to do. While governments have the final say on how resources are developed, this policy demonstrates Talisman’s good faith attempt to involve and respect our community neighbours.

Sharing Information About Our Shale Developments

Our commitment to our community partners is that we will make every effort to share information and address their concerns. As an example, in North America there is public concern about shale development, including the use, sourcing, treatment and disposal of water. In addition, there is concern about the use of fracturing fluids to fracture the shale and recover the gas. We are committed to open and transparent communications on our shale operations, including full disclosure of fracturing fluids.

In 2010, we conducted more than 100 open house meetings in Pennsylvania, British Columbia and Quebec, where we met with landowners, community groups and others to discuss our development activities and our plans to minimize environmental impacts. As a further measure, we began publishing a listing of fracturing chemicals used in our Pennsylvania operations on our Talisman Energy USA website. In 2011, we will list fracturing chemicals for all of our shale gas developments across North America on both our corporate and Talisman Energy USA websites. The Talisman Energy USA website also provides detailed information on our drilling procedures as well as any notices of violations and our corrective actions.

In Quebec, we took an active part in public hearings on shale gas exploration and development led by the provincial government’s Bureau des audiences publiques sur l’environnement (BAPE).

We shared information on our shale gas development activities, the purpose of fracturing fluids and the different operating practices we use to protect fresh water.

Building Relationships With Aboriginal Communities

Talisman works with Aboriginal and indigenous communities in an honest and respectful manner to build strong relationships. Talisman proactively engages communities on our projects, allowing time for review of our development plans and an opportunity to provide feedback on general areas of concern that could require further consultation. Early and ongoing consultation with communities has allowed Talisman to respond to concerns and arrive at solutions that benefit both the company and communities.

In 2010, we continued to build on our strong existing relationships with Aboriginal communities in Alberta and British Columbia. In northeast British Columbia, for example, we continue to work closely with communities near our projects. Three of these communities are West Moberly First Nations, the Saulteau First Nations and the Halfway River First Nation. A focus of our discussions in 2010 with these communities was the hiring of Aboriginal-owned businesses to support our shale gas exploration efforts. We also invested more than $40,000 in local initiatives that support education and training, culture retention, health and wellness and youth and elders in these communities.

In areas like the Quebec lowlands, where we are in the early stages of exploring for shale gas, we began developing relationships with Aboriginal neighbours such as the Le Grand Conseil De La Nation Waban-Aki, representing the Conseil de Bande des Abénakis de Wôlinak and the Conseil de Bande d’Odanak.

Engaging Communities In Colombia

We continued to apply an open and transparent approach to engaging communities in all operating regions. For example, in Colombia we are conducting seismic operations in a number of areas, including Block 8, a remote rainforest environment bordering on four indigenous reserves. In 2010, we adopted a creative approach to involve indigenous and non-indigenous communities to educate them on our seismic project. W e hosted interactive outdoor presentations and produced a storybook, both in Spanish and native languages, created with local indigenous people to explain different aspects of the project. The name of the project – Dajitaneja – means “for all� in a local indigenous language.

We also partnered with a local independent civil society organization, Fundación Ideas para la Paz (FIP), to promote transparency in our community engagement activities. In 2010, FIP representatives attended our meetings with indigenous communities to act as impartial observers and monitor our engagement with these communities. Started in 2009, this partnership has provided ongoing feedback in the field on our engagement activities and an additional level of assurance to Talisman’s human rights performance.

Engaging Communities In Peru

Talisman has operator interests in five onshore blocks and is non-operator of two blocks covering 8.7 million net acres in the Maranon basin of northern Peru. Since we began exploration in Peru in 2004, most activity has been in Block 64, where light oil was discovered in 2005 and confirmed in 2009.

We recognize the unique nature of these local communities in Peru, and before operational activity begins, Talisman must have the consent and support of two-thirds majority of each impacted community.

Our consultation process involves public meetings and workshops to explain plans and listen to concerns, using third parties and local language as necessary. This is followed by the negotiation of compensation for disruption and impact, which runs in parallel with a formal environmental impact assessment study required by the Peruvian government. We have consulted and received consent for exploration and seismic activities in Blocks 64, 101, 134 and 158. We also have good neighbour agreements with almost all of the communities on the Morona River. For instance in Block 64, land access, compensation and bilateral code of conduct agreements, signed with the previous operators, were renegotiated. Talisman is committed to open dialogue with all stakeholders. We are engaging with a number of organizations, including non-governmental organizations, in North and South America to understand concerns and receive feedback on how to improve our operations and practices in Peru.

In the fall of 2010, we began an environmental impact assessment study for a proposed production project in the Situche Central region of Block 64. As part of the study, scientists are collecting environmental and social data from the area where the project would take place. Results of the study will be shared with local communities through public workshops.

More Than $8 Million Contributed To Communities

We contributed approximately $8.5 million to community initiatives worldwide in 2010. We focused our donations and sponsorships in areas that are important to our business and communities, with a focus on youth and education.

In 2010, we made a commitment to contribute $1 million over five years to the Centre for Affordable Water and Sanitation Technology (CAWST). The Calgary-based, not-forprofit organization provides education, training and technical consulting in water and sanitation to organizations that serve the poor in developing countries. Talisman funds will be used to grow a global network of water expertise and training to improve access to clean drinking water and sanitation in areas of greatest need in developing countries.

Responding To International Relief Efforts

During the year, our company and our employees responded to international campaigns to assist people affected by devastating natural events. We provided more than $500,000 globally to registered charities assisting with the earthquake relief efforts in Haiti and flood relief efforts in Pakistan, Vietnam and Colombia. The money was used to provide clean water, medical assistance and other relief items for affected communities.

More recently, in early 2011 we were affected directly when a destructive flood in Brisbane, Australia, caused our regional office to temporarily close and forced some of our employees to provisionally relocate. We worked to ensure the safety of our workers throughout this event and, in the aftermath, contributed $50,000 to help with relief efforts.