Murphy Oil Corporation operates under the direction of an active and involved Board of Directors. The Board has six scheduled meetings per year at which it reviews and discusses detailed reports by management on the performance of the Company, our plans and prospects, as well as immediate issues we confront. In 1993, we established a Public Policy and Environmental Board Committee—one of the first in the industry to do so. The Committee’s job is to provide the management team with guidance and support in developing Murphy’s environmental initiatives and in preparing the Company for challenges that lay ahead. The group receives environmental updates semi-annually, and in conjunction with Murphy management, the Committee reviews compliance reports, establishes goals, studies audited carbon dioxide (CO2) emissions data and explores alternative energy opportunities.

In the last ten years, the Company has invested in major environmental improvements totaling more than $238 million that have resulted in 73 percent reduction in criteria pollutant emissions from its refining operations.

Environmental Policy Working Committee

Recognizing the need for a more unified and transparent environmental and global climate change policy, Murphy recently formed an Environmental Policy Working Committee. This committee is composed of members from various support and operational functions. Due to the long-term and strategic impact of global climate change and the initiatives that will be required to implement Murphy’s new policy, the Committee is currently chaired by Murphy’s Manager of Corporate Planning. Members of the Committee include representatives from Corporate Safety, Law, Treasury and Investor Relations. Membership will be expanded in the near future to operating companies, both upstream and downstream. The Committee reports directly to the CEO. The Committee also works as an adjunct and reports regularly to the Public Policy and Environmental Committee of Murphy’s Board of Directors.