Incident Management and Emergency Preparedness 

Texas Pacific has a defined process to track spills on our land, emergencies and incidents, and identify areas for process improvements. TPL's incident reporting process involves thorough documentation that is used to investigate all incidents. This document specifies the “owner” of an incident, corrective actions needed, and the targeted completion date for necessary measures. TPL’s procedural documentation is accompanied by a formal reporting timeframe to ensure transparency, accountability, and timely responses. This allows us to effectively monitor and accurately report incident data, while also supporting internal trending intelligence and process improvements.

TPL’s superior workforce health and safety results are a direct reflection of how we integrate safety into the fibers of our operations and culture. For example, if there is ever an accident or incident that requires an investigation, the interview questions are specifically targeted at finding the root cause, not assigning blame, which is important in cultivating an environment of trust and achieving meaningful solutions.

In the event of a significant incident, TPL will implement a “Safety Stand Down”, stop work at our locations, and bring together all leadership, employees, and contractors to discuss key elements of the incident and lessons learned. These types of lessons are integrated into monthly safety trainings, ensuring all employees are kept abreast of the latest safety developments, thus mitigating the risk of recurring incidents.

TPL has an Emergency Action Plan (“EAP”) for every active site and has an established cadence for reviewing and updating EAP documentation. These are updated on a quarterly basis to ensure the incorporation of new assets, processes, technology, and emergency contacts.

Contractor and Supplier Engagement

Texas Pacific maintains a strong relationship with third-party contractors and recognizes the importance of managing contractors’ performance, as contractors are an extension of our company’s brand and reputation. Contractors and subcontractors that perform onsite work at TPL locations are required to abide by TPL’s Contractor Expectations Guide, which outlines expectations for ethical and safe business practices. 

To create consistency between employee and contractor safety procedures, we enable contractor attendance at company-sponsored safety exercises and events, including safety training meetings and/or stand-downs. Additionally, TPL communicates incident and emergency response expectations to contractors and requires them to notify TPL in the event of any safety or environmental incidents. This allows contractors to be well-informed, well-trained, committed, and capable of managing potentially dangerous and/or emergency situations.

TPL has designed internal documents to gather and manage information about contractor performance in a variety of areas, including health and safety. Contractor performance and adherence to these expectations is observed and reported back to leadership by the HSE Department. Contractors are audited annually or on an as-needed basis by the HSE Department and by TPL’s Internal Audit Department. In this way, TPL is able to actively manage relationships with contractors and ensure safety best practices throughout its operations.

A few select highlights of our efforts throughout 2024 are as follows: 

High Sky Children’s Ranch School Drive Donation 
Thanks to the generosity of TPL and our employees in Dallas and Midland, boxes of school supplies were provided to High Sky Children’s Ranch on July 9, 2024. Suppliers were donated to children in High Sky’s community programs, including their boys’ teen home, emergency shelter, foster care homes, and to young adults who are preparing for adult living. More information on High Sky and their services can be found on their website at https://www.highsky.org/. 

Society for the Prevention of Cruelty to Animals (“SPCA”) Volunteer Day 
As stated on the SPCA website, “Founded in 1938, SPCA of Texas is the most comprehensive and longest-serving animal welfare agency in North Texas. Our mission is to provide every animal exceptional care and a loving home.” TPL employees in Dallas contributed to this mission through a volunteer day at the SPCA of Texas on July 24, 2024. Volunteers prepared toys for dogs and favors for an SPCA appreciation event. 

Genesis Women’s Shelter Donation Drive
The Genesis Women’s Shelter’s Mission is “To provide shelter, safety and support for women who have experienced domestic violence, and to raise awareness regarding its cause, prevalence, and impact.” Due to the generosity of our Dallas employees, TPL dropped off a sizeable donation of personal care items, diapers, hand warmers and food to the Genesis Women's Shelter on December 12, 2024.

H-E-B’s “Feast of Sharing”
A group of Midland employees volunteered at the H-E-B "Feast of Sharing" on November 1, 2024, at the Midland County Horseshoe Arena.  According to the H-E-B website, “Feast of Sharing is a series of festive gatherings that serve more than 340,000 meals at 34 dinners throughout Texas and Mexico. Filled with food, music, and good cheer, these free holiday feasts are open to the public and bring together family, friends and neighbors. Launched in 1989, H-E-B Feast of Sharing gives the company an opportunity to give thanks to its loyal customers and invites everyone to our holiday dinner table. In the more than three decades H-E-B has held the celebrations, more than 375,000 volunteers have helped serve nearly four million meals.”

Community and Landowner Engagement Programs

TPL views its neighboring landowners and grazing tenants as valued partners, with many relationships dating back more than 100 years. Building trust and maintaining positive, engaged, and proactive relationships with these stakeholders enables the Company to successfully access land, a necessary resource for our water services business. This allows for optimal land development opportunities and creates long-term economic growth and reputational value. Fostering meaningful, productive relationships with our communities, such as neighboring landowners and grazing tenants, allows us to build out social strategies that help brand TPL as an established, accountable community partner.

TPL employees are expected and empowered to develop and maintain relationships with our community, primarily local landowners as they are our key stakeholder group. Given the fact we do not own or operate any exploration or extractive projects, community engagement through town halls or other public venues is not as impactful or meaningful as it is to meet with our landowners one-on-one or to proactively reach out over the phone.

We have a defined program to actively engage and communicate with our landowners and ensure we remain responsive and inclusive should they ever reach out with questions or concerns. Our landowner engagement efforts happen consistently throughout the year, or, prior to TPL initiating new infrastructure development projects – such as our renewable energy infrastructure project. We first identify the landowner(s) that are most likely to be impacted and proactively seek to address any needs or concerns. This fosters trust and open communications.

TPL’s company name is displayed across our water assets so landowners know who the assets belong to and who to contact in the event of an issue or grievance. Community members can contact TPL through our publicly available QR code to immediately reach the right TPL person, either to report key observations or formally log a grievance. A name, email and phone number immediately populate for ease of contact. In addition, community members and landowners have access to our Ethics Hotline, which can be found on the TPL website. TPL is committed to investigating and resolving any grievances or concerns raised by landowners and local communities.

We also meet with local emergency responders to help ensure a coordinated response in the rare event of an incident. This has never occurred, but we have the processes and protocols in place to immediately respond. We also follow up with landowners and maintain ongoing updates.