Halliburton 2015 Annual Report Download - page 29

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that restrict or in certain cases prohibit the use of hydraulic fracturing for oil and gas development. In addition, governmental
authorities in various foreign countries where we have provided or may provide hydraulic fracturing services have imposed or
are considering imposing various restrictions or conditions that may affect hydraulic fracturing operations.
The adoption of any future federal, state, local, or foreign laws or implementing regulations imposing reporting
obligations on, or limiting or banning, the hydraulic fracturing process could make it more difficult to complete natural gas and
oil wells and could have a material adverse effect on our liquidity, consolidated results of operations, and consolidated financial
condition.
Liability for cleanup costs, natural resource damages, and other damages arising as a result of environmental laws
could be substantial and could have a material adverse effect on our liquidity, consolidated results of operations, and
consolidated financial condition.
We are exposed to claims under environmental requirements and, from time to time, such claims have been made
against us. In the United States, environmental requirements and regulations typically impose strict liability. Strict liability
means that in some situations we could be exposed to liability for cleanup costs, natural resource damages, and other damages
as a result of our conduct that was lawful at the time it occurred or the conduct of prior operators or other third parties. Liability
for damages arising as a result of environmental laws could be substantial and could have a material adverse effect on our
liquidity, consolidated results of operations, and consolidated financial condition.
We are periodically notified of potential liabilities at federal and state superfund sites. These potential liabilities may
arise from both historical Halliburton operations and the historical operations of companies that we have acquired. Our
exposure at these sites may be materially impacted by unforeseen adverse developments both in the final remediation costs and
with respect to the final allocation among the various parties involved at the sites. The relevant regulatory agency may bring
suit against us for amounts in excess of what we have accrued and what we believe is our proportionate share of remediation
costs at any superfund site. We also could be subject to third-party claims, including punitive damages, with respect to
environmental matters for which we have been named as a potentially responsible party.
Failure on our part to comply with, and the costs of compliance with, applicable health, safety, and environmental
requirements could have a material adverse effect on our liquidity, consolidated results of operations, and consolidated
financial condition.
Our business is subject to a variety of health, safety, and environmental laws, rules, and regulations in the United
States and other countries, including those covering hazardous materials and requiring emission performance standards for
facilities. For example, our well service operations routinely involve the handling of significant amounts of waste materials,
some of which are classified as hazardous substances. We also store, transport, and use radioactive and explosive materials in
certain of our operations. Applicable regulatory requirements include, for example, those concerning:
- the containment and disposal of hazardous substances, oilfield waste, and other waste materials;
- the importation and use of radioactive materials;
- the use of underground storage tanks;
- the use of underground injection wells; and
- the protection of worker safety both onshore and offshore.
These and other requirements generally are becoming increasingly strict. Sanctions for failure to comply with the
requirements, many of which may be applied retroactively, may include:
- administrative, civil, and criminal penalties;
- revocation of permits to conduct business; and
- corrective action orders, including orders to investigate and/or clean up contamination.
Failure on our part to comply with applicable environmental requirements could have a material adverse effect on our
liquidity, consolidated results of operations, and consolidated financial condition. We are also exposed to costs arising from
regulatory compliance, including compliance with changes in or expansion of applicable regulatory requirements, which could
have a material adverse effect on our liquidity, consolidated results of operations, and consolidated financial condition.
Existing or future laws, regulations, treaties or international agreements related to greenhouse gases and climate
change could have a negative impact on our business and may result in additional compliance obligations with respect to
the release, capture, and use of carbon dioxide that could have a material adverse effect on our liquidity, consolidated
results of operations, and consolidated financial condition.
Changes in environmental requirements related to greenhouse gases and climate change may negatively impact
demand for our services. For example, oil and natural gas exploration and production may decline as a result of environmental
requirements, including land use policies responsive to environmental concerns. State, national, and international governments
and agencies have been evaluating climate-related legislation and other regulatory initiatives that would restrict emissions of
greenhouse gases in areas in which we conduct business. Because our business depends on the level of activity in the oil and