Newfield Board Member Env Expertise 2013
|Company||Newfield Exploration Co.|
|Filer||New York State Comptroller|
|Sector||Oil and Gas|
|Resolved Clause Summary||Independent board member with environmental expertise|
Environmental expertise is critical to the success of companies in the energy industry because of the significant environmental issues associated with their operations. Shareholders, lenders, host country governments and regulators, and affected communities are focused on these impacts. A company’s inability to demonstrate that its environmental policies and practices are in line with internationally accepted standards can lead to difficulties in raising new capital and obtaining the necessary licenses from regulators.
Newfield Exploration is currently engaged in exploratory oil and gas operations in the US and overseas, (including offshore oil drilling and fracking for natural gas), that have the potential of causing adverse environmental impacts which can damage shareholder value. We believe that Newfield Exploration would benefit by addressing the environmental impact of its business at the most strategic level by appointing an environmental specialist to the board. An authoritative figure with acknowledged environmental expertize and standing could perform a valuable role for the company by enabling Newfield to more effectively address the environmental issues inherent in its business. It would also ensure that the highest levels of attention focus on the development of environmental standards for new projects. Such a board role would strengthen the company’s ability to demonstrate the seriousness which it addresses environmental issues.
THEREFORE, IT BE RESOLVED: Shareholders request that, as elected board directors’ terms of office expire, at least one candidate be recommended who:
• has a high level of expertise and experience in environmental matters relevant to oil and gas exploration and production and is widely recognized in the business and environmental communities as an authority in such field, as reasonably determined by the company’s board, and
• will qualify, subject to exceptions in extraordinary circumstances explicitly specified by the board, as an independent director under the standards applicable to the to the company as an NYSE listed company,
in order that the board includes at least one director satisfying the foregoing criteria, which director shall have designated responsibility on the board for environmental matters.