GOVERNANCE
Hess Corporation has implemented a values-based, socially responsible strategy focused on improving environment, health and safety (EHS) performance and improving the quality of life in the communities where we operate. This strategy is guided by the Company’s EHS policies and by management systems and programs that work to protect our employees, customers and host communities. These policies can be found at www.hess.com, our internet web site.

Our EHS management systems are based on recognized international standards that promote consistency, adherence to policies, and continued improvement in performance. In 2005, nearly a quarter of our total oil production and throughput was from ISO 14001 certified operations.

Hess Corporation recognizes its responsibilities as a global energy producer, especially as we grow and expand our exploration and production activities worldwide. Our Business Practice Guide provides employees with guidance and expectations regarding business ethics, citizenship, contracting and labor practices, regulatory compliance, safety and stewardship of the environment. The Hess Leadership Team, comprised of the Company’s top management, establishes company-wide performance objectives and reviews results. Additionally, the Audit Committee of the Hess Corporation Board of Directors routinely reviews our performance in these areas.

We have management systems, an audit program and strong governance policies in place to drive continuous improvement. Technical support and functional guidance is provided to various business units through corporate and business unit staff. A chart showing the Environment, Health and Safety organization is available at www.hess.com.

We work with other companies in the energy industry as well as external groups such as trade associations and professional organizations to advance our knowledge of worldwide EHS and Social Responsibility issues. Various internal task forces also foster information sharing that helps business managers to address company performance objectives.

We will continue to use this report to chart our progress. Ultimately, the better we are at being safer, healthier, environmentally sound and socially responsible, the more value we will create for shareholders and other stakeholders that help us to be an industry leader. A summary of our objectives and performance is included on the following pages.