Although security risks cannot be entirely eliminated, we believe they can be effectively managed. ConocoPhillips has taken comprehensive steps and invested heavily to address potential threats to our operations around the world. Through systematic security audits by specially trained personnel, we continuously monitor and assess the potential for malicious action and implement a variety of preventive measures to provide for the safety and security of our personnel and operations. In 2010, our Global Security staff completed 34 audits at global operational facilities.

As an operator of critical infrastructure in many challenging locations worldwide, we work closely with governmental agencies, nongovernmental organizations, our peers and local communities on initiatives to identify, detect, deter, prevent and mitigate potential terrorist attacks and other threats to company personnel and facilities. ConocoPhillips facilities are compliant with the Chemical Facility Anti-Terrorism Standards, Maritime Transportation Security Act, Hazmat Transportation Security requirements, the International Ship and Port Facility Security Code, U.S. Customs-Trade Partnership Against Terrorism standards, and all other applicable governmental security requirements.

ConocoPhillips maintains its Tier Three status in the Customs-Trade Partnership Against Terrorism program by demonstrating effective security that exceeds the minimum program criteria. Our program examines categories of company procedures intended to maintain the integrity and security of the international supply chain. This effort is conducted through on-site visits and procedural reviews by U.S. Customs and Border Protection officials who assess the overall effectiveness of our security processes.

In 2010, ConocoPhillips continued as an active, participating member of the Overseas Security Advisory Council (OSAC), one of a group of approximately 30 public-sector entities that make up the core council. OSAC is a federal advisory committee with a U.S. government charter to promote security cooperation between American business and private-sector interests worldwide. Currently, OSAC encompasses representation from the U.S. departments of Treasury, State and Commerce; the Executive Office; and more than 140 country councils. Today, members of more than 7,500 U.S. companies, educational institutions, faith-based institutions and non-governmental organizations are OSAC constituents.

ConocoPhillips is also a founding member and leadership board member of the Domestic Security Alliance Council (DSAC). This group creates a strategic partnership between the Federal Bureau of Investigation (FBI) and the U.S. private commercial sector to enhance communications and promote the timely and effective exchange of information. The DSAC advances the FBI mission in preventing, detecting and investigating criminal acts, particularly those affecting interstate commerce, while advancing the ability of the U.S. private sector to protect its employees, assets and proprietary information. In 2010, there were more than 150 companies participating in the DSAC program, representing every critical infrastructure and business sector. Companies participating in DSAC account for approximately 34 percent of the U.S. Gross Domestic Product and account for 8.1 percent of total U.S. employment.