Borax is committed to reducing its GHG emissions through both its practices and its products. While our use of diesel, natural gas and electricity creates emissions, our products' use in hydrogen fuel cells, insulation fiberglass, and ceramic tiles actually reduces emissions.

We began tracking and reporting GHG emissions in 1990. In 2003, we established a Climate Change Policy and Action Plan and set a target to reduce our GHG emissions by three percent between 2003 and 2008. We also joined forces with other companies and environmental groups - including the Pew Climate Center, the World Resources Institute, and the California Climate Action Registry - to augment our efforts.

Our GHG emissions are presented in the first chart below. Please note:

• On-site numbers are higher than total numbers because they include emissions from our two cogeneration plants, which convert clean-burning natural gas to electricity and steam. These plants produce 100 megawatts of electricity, 85 of which we sell to the local utility.

• Total numbers include emissions from our operations, as well as emissions associated with transporting raw materials to Borax, and refined borates to our customers in nearly 100 countries.

• 2003 numbers increased slightly. Although we reduced total use of fuel by five percent in 2003, our GHG emissions increased slightly for two reasons. The first reason had to do with routine maintenance of one of our cogeneration plants. With the plant out of commission for several days, we used older, less efficient steam boilers to generate the energy needed to keep our operations running. As a result, we used more natural gas - and created more GHG emissions - for a short time. Our second reason had to do with how we calculate GHG emissions. In 2003, we reported emissions in keeping with WRI/WBCSD Greenhouse Gas Protocol, the highest reporting standard. This resulted in a smaller credit than before for emissions associated with electiricity we sell to the grid.

Ozone Depleting Substances
Our primary mining and refining operations are located in California's Mojave Desert, where temperatures can reach 118° F in the summer months. The facility requires more than 800 refrigeration units. In 2003, these units required replacement of the following ozone-depleting substances:

• 300 pounds of R-22
• 120 pounds of R-12
• 90 pounds of MP39

Nitrogen Oxide Emissions
Nitrogen Oxides or NOx emissions are created by fuel combustion. The primary effects of NOx are indirect; they promote the formation of ozone - a substance that shields the earth from ultraviolet radiation in the upper stratosphere, but is a component of smog closer to earth. Borax's global NOx emissions are shown below. Increased mining to remediate our pit wall failure in 2000 and 2001 caused increased NOx emissions. More recently, we have been able to reduce NOx by switching to more efficient haul trucks and improving maintenance practices.

Particulate Matter Emissions
Particulate matter is another name for dust and combustion products that affect air quality. Borax generates particulate matter by driving haul trucks and by manufacturing and shipping its products. We have a long record of meeting or exceeding state and federal air quality standards, but some neighbors closest to our Mojave Desert mine expressed concern about their exposure to dust.

In response, Borax invested more than $500,000 in an air monitoring program, placing monitors in the open desert and in communities closest to our operations. Data showed that our operations contribute less than one half of one percent of the dust our neighbors are exposed to, and independent analysis confirmed that there is no health risk associated with that exposure. We also agreed to water down nearby haul roads twice as often as required to keep dust at a minimum. Finally our maintenance program is designed to keep haul trucks operating as efficiently as possible to reduce particulate matter emissions.