RESPONSIBLE

OPERATIONS

Castleton Resources
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Environment, Social and Governance

Our culture of health, safety and environmental stewardship that drives our areas of improving ESG performance, making a positive impact on the communities where we live and work.

Environment

Castleton Resources is committed to reducing our footprint and protecting land, water, habitats, and communities. We aim to continually improve our performance.

Air

Castleton Resources tracks emissions released by our facilities and works to reduce emissions from our operations. We report our greenhouse gas (GHG) emissions in accordance with the U.S. Environmental Protection Agency mandatory greenhouse gas reporting rule. We use the previous year’s GHG emissions as our base year to compare our performance over time.

Methane is a potent greenhouse gas. When it is released into the atmosphere, it has a much higher global warming impact than carbon dioxide. Leaks in the natural gas system account for high percentage of methane emissions. Castleton Resources goes above industry standard requirements and employs the use of an optical gas imaging camera for leak-detection and repair programs.

Some facilities are subject to annual emissions inventories, which we submit to the Texas Commission on Environmental Quality where the information is made available to the public.

Environment, Social and Governance
Environment, Social and Governance

Venting and flaring of natural gas wastes valuable resources and contributes to climate change. We strive to avoid venting and to limit flaring, both to protect the environment and to capture and retain as much gas as possible for its economic value. To do this, we continually evaluate and optimize facility design; install and maintain reliable pressure-relief valves to minimize tank releases; install vapor-recovery equipment to capture flash gas emissions and route them to a pipeline. We also use green completions to capture produced gas during completions and well workovers following hydraulic fracturing.

Environment, Social and Governance
Environment, Social and Governance

Water Use

We are committed to water conservation and reuse. We work to use water in our operations that would not be consumed for drinking and other public uses and to use recycled produced water in our operations wherever possible to avoid freshwater use in areas of drilling and production activity. Every gallon of produced, recycled, brackish or non-fresh water that we use in our operations reduces our consumption of fresh water.

Spill Prevention and Management

Castleton Resources has requirements and procedures in place to prevent operational spills. We have routines in place to maintain facilities and pipelines, and improve their reliability, to reduce spills.

Our environmental management program includes a comprehensive Spill Prevention Countermeasures and Control (SPCC) protocol to ensure compliance with environmental rules and regulations. The protocol details the responsibilities, equipment, procedures, and steps to prevent, control and provide adequate countermeasures to a discharge.

Land Conservation

By designing most pads to accommodate multiple wells, Castleton Resources can centralize operations and reduce the number of pads required for optimal land use. In addition, technological advancements have enabled us to substantially increase lateral lengths, further minimizing the number of pads constructed. Another benefit to multi-well pad sites is the reduction in road traffic due to less frequent mobilization of drilling rigs and fewer individual sites requiring maintenance.

Castleton Resources has integrated biodiversity management into our process for selecting the placement of our well pads. Once the future location of a well pad is staked, an environmental assessment is performed to evaluate the potential environmental impact in that area.

Potential impacts that are considered during this assessment include the proximity to waters of the U.S., presence of jurisdictional wetlands, potential impact on protected species or critical habitats, proximity to any public receptors, and location of nearby floodplains. Evaluating the results of this assessment prior to the construction of the well pad allows for our teams to determine if there are environmental concerns and to adjust accordingly.

Social

Social performance means building strong relationships with people, understanding their priorities and concerns, and managing our impact. We aim to play a positive role in communities where we operate.

Castleton Resources contributes to the development of local economies by creating jobs, developing skills, sourcing from local service providers and suppliers, as well as paying taxes and royalties. Our environment, health and safety specialists continually assess and manage the impact of Castleton Resources’ business to ensure that work is carried out in a responsible way.

Workforce

Our employees’ knowledge, expertise, skills, and creativity are essential to Castleton Resources’ success. We work to maintain a productive and healthy organization by employing and developing talented people, continually strengthening our leadership, and enhancing employee performance by fostering strong engagement.

Safety

We aim to do no harm to people. Every employee and contractor is expected to meet our safety standards and requirements. We continue to strengthen the safety culture among our employees and contractors.

We expect everyone working for Castleton Resources to intervene and stop work that may appear unsafe.

We investigate incidents to learn from them, sharing findings to improve safety performance across our industry.

Environment, Social and Governance
Environment, Social and Governance

Security

Managing security risks helps protect our employees, contractors, surrounding communities and the environment. In line with our goal of no harm to people, we carefully assess the security threats and risks to our operations. We work with governments and partners to safeguard assets and provide a secure working environment for employees and contractors.

Governance

Guided by our core values and commitment to integrity, we seek to operate in a financially, environmentally, and socially responsible way. Our corporate governance principles and practices direct how we make decisions, manage risk, and build relationships.

Our leadership team is accountable for generating operating returns, delivering exceptional execution and appropriately allocating capital. The leadership team updates the board regularly on the economic and operational risks and opportunities.