Our newly combined environment, health and safety (EHS) management system is designed to streamline and standardize previously separate environmental and safety management systems and compliance programs, to enhance our overall performance.
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We have a new assessment tool in place to support our combined EHS management system. It helps us identify any gaps in EHS management and performance at our mills and implement improvement plans.

We conducted 35 environmental, health and safety assessments in 2007, compared with 68 corporate environmental inspections in 2006. The number of assessments was reduced as part of the transition to the new EHS management system. The new assessment is more complex, focusing on how EHS is managed as well as taking a snapshot of performance and highlights areas where facility and corporate management systems can be improved.

We have also developed a set of operational control standards for areas including:

• Fresh water use
• Storm water control
• Wastewater management
• Air emissions control
• Waste management
• Management of polychlorinated biphenyls (PCBs)
• Control of ozone-depleting substances
• Asbestos management
• Management of radioactive devices
• Bacteria control management

We require each facility globally to certify quarterly its compliance with applicable environmental laws and regulations and corporate wastewater standards. During 2007, eight mills reported compliance exceptions. Issues of non-compliance are being addressed and, if appropriate, reported to government authorities. Mills must develop action plans to address any issues identified.