Nestlé Waters North America’s “Good Neighbor Policy” was created to reflect and assure that we are a positive impact in the communities where we operate.  The policy was created over time, with input from area citizens, elected officials and employees, all wanting to ensure that the community’s character is preserved, and that the renewable sources of the pristine springs will remain healthy and vibrant for generations to come.  As all good policy, this is one that will evolve as the needs of the community change.  At Nestlé Waters North America, we will adhere to our principled commitment to respect the communities and the environment in which we operate.

I.    Open Communication: Nestlé Waters North America commits to be responsive to local regulators, public officials and neighbors to address questions, issues and opportunities as they arise. 

 Policy in Action: 

Ozarka first notified the residents of Wood County about its proposed plans for expanded spring water operations in May 2000.  Before the first monitoring well was installed for research purposes, the company shared its plans with the residents of the County through direct mail, full-page advertisements in local newspapers, speaking appearances at regional business and civic organization meetings, and media briefings for all local reporters and editors.  Further, Ozarka hosted a public information seminar and Q&A session, created a website, www.woodcountyproject.com and a toll-free line, 877-409-4424, to provide additional forums for sharing concerns and ideas with the company.

Ozarka has voluntarily shared monitoring and production information about its spring water collection with the Henderson County Advisory Committee, the Texas Water Development Board and the Texas Natural Resource Conservation Commission even though no regulations call for releasing such proprietary information.

II.      Environmental Excellence:     Both in its bottling plants and at its spring sites, NWNA’s environmental policy mandates, at a minimum, strict compliance with environmental regulations at federal, state and local levels but also meets stringent internal standards for environmentally sound business practices.

 Policy in Action: 

In our Plants: For years, Ozarka has demonstrated the desire and expertise to raise the bar for environmental management practices in Texas.  At new bottling plants, Ozarka targets an annual Leadership in Energy and Environmental Design (LEED) rating by the Green Building Council.  At existing plants, the company seeks to retrofit machinery to conform with standard LEED practices.  Internally, Ozarka employees follow recommendations of our company’s “Green Team,” which pioneers ways to further protect the environment by reducing, reusing and recycling.

At our Springs:  At Ozarka’s spring sites, the company performs the testing and research required to understand the characteristics of the aquifer and surrounding ecosystem from which the springs flow.  The ongoing scientific analysis ensures that Ozarka bottles only the amount of water that can be collected safely, without disturbing the long-term equilibrium of the spring and its aquifer.  For example, in Wood County, an option on an 1100-acre tract was not included in the final purchase plan because Ozarka’s environmental testing showed that several springs on the property were not prolific enough to sustain long-term spring water collection without an associated environmental risk.

Each spring site benefits from an extensive monitoring program that provides insight to the vitality of the spring and related ground and surface water resources.  The long-term monitoring system is installed during the research phase, before bottling begins, and is enhanced as the spring water collection components are constructed.  The entire monitoring system serves as a tool for our Natural Resource Manager to safely guide water collection. 

Ozarka’s goal to optimize the preservation and restoration of the environment is achieved by operating on large tracts of land that will be restored to a natural habitat and protected from industrial endeavors that could chemically or physically alter the natural recharge of the area. 

In our Offices:  Ozarka’s commitment to environmental excellence extends to the company’s collective voice in areas of policy and leadership.  Ozarka lends its expertise in water resource management to policymakers who institute measures to protect the environment and it encourages employees to participate in educational programs and seminars and to become involved in environmental issues. 

III.   Drought Curtailment Plan: NWNA maintains an ongoing commitment to safe spring water collection, which includes curtailing spring water operations if the Natural Resource Manager determines that the spring flow due to drought is too diminished.  

 Policy in Action:

In 1997, NWNA created the position of Natural Resource Manager, whose main responsibility is to identify, develop and safeguard the sources that provide our spring water product.  Managers operate autonomously of production needs so that the best decisions regarding the health and vigor of the spring sources can be made objectively and systematically.  The Natural Resource Manager in Texas routinely alters water collection rates as needed during dry periods to preserve the environmental health of the spring discharge and surrounding area.  For example, during the drought of 1998 in Texas, Ozarka voluntarily reduced spring water collection by 35% at Roher Spring in Henderson County.  For six months, Ozarka operated at a reduced rate until area rains replenished and recharged the spring water aquifer to allow for bottling without adversely impacting the source.

 IV.     Water Resource Relations: NWNA will cooperatively work with neighboring landowners who may have concerns that NWNA's operations are negatively affecting their water supply well.  If it is determined that NWNA's operations are negatively impacting the performance of their well, the company will take actions to remedy the situation. 

Policy in Action: 

            Because our business involves the collection of a renewable natural resource, Ozarka is committed to working with neighboring landowners to assure the continual availability of water resources in the immediate vicinity of our spring water operations.  While we stand behind our commitment to operate with no adverse impact on the environment or our neighbor’s water supplies, some communities may be interested in additional administrative assurances.  In these instances, Ozarka will implement measures on a case-by-case basis that provide security to adjacent and surrounding landowners in the event of unforeseen occurrences of diminished water resources. 

 Should the diminished water supply be directly attributable to the collection of water by Ozarka, as verified by an independent, third party review, the company will cooperatively work with surrounding landowners to provide them with uninterrupted water supplies.  Measures taken may include, but not be limited to, delivery of water to residences, connection to municipal or rural water supplies (where available), new residential well installation, existing well rehabilitation, or other mutually acceptable option.  While direct communication with the company is always available and encouraged, in some areas, local communities may choose to communicate through a more formal process, such as creating or involving an advisory committee, the local governing board, a water district or other type of oversight administration.

It is our sincere belief that through Ozarka’s policy of open communication, scientific excellence and corporate accountability, any issues that may arise can be handled expediently, with integrity and respect for all parties involved. 

V.     Public Use of Land:  NWNA is committed to preserving open space and allowing for the public use of land where possible. 

Policy in Action:

Ozarka intends to preserve and restore to its natural state the expansive lands around its spring sites.  The company will consider proposals for the public use of its open land if there is no risk to employees, the spring source, or the surrounding environment.  Plans for the Ozarka bottling plant near Hawkins designate a separate building for communal use by schools or groups interested in furthering their water education.  Another idea open to discussion is the creation of nature trails on the property that would be accessible for supervised tours. 

VI.     Traffic Mitigation: NWNA commits to studying traffic flows to develop lowest impact routes.

 Policy in Action

Ozarka’s due diligence research included finding a location for the Wood County bottling plant that would present minimal impact on the neighborhood and community in terms of traffic, noise, safety, and hours of operation.  The company purchased 350 acres adjacent to the spring property that will buffer the neighborhood from the plant, protect spring water recharge, and allow access to a County road with minimal impact to the residential neighbors.

A professional traffic study was completed during the evaluation phase, and another study will be conducted by a certified traffic engineer to address potential traffic concerns associated with plant construction.  Ozarka drivers undergo extensive safety training and routing is determines in collaboration with TXDOT, local government officials and traffic engineers.

At our existing spring sites, Ozarka pays for maintenance and upgrades as necessary for roads around its bottling plants or spring sites.  Taxpayer dollars will not be used to support area road upgrades and modifications to accommodate Ozarka. 

VII.     Exemplary Employment Practices:  NWNA strives to set the standard for employment practices in the industry, but also in the community.

 Policy in Action

With a policy to hire locally wherever possible, Ozarka provides training and career advancements to hundreds of Texans across the state, and thousands across the nation.  The company maintains a competitive compensation and benefit package and aims to provide a positive and productive work environment for the corporate family to enjoy.  Among the 782 employees in Texas, Ozarka values a team approach while placing an emphasis on individual respect and the needs of others. 

VIII.     Water Education:  NWNA supports national and local water education programs.

 Policy in Action

Ozarka is pleased to unveil a plan to offer Project WET (Water Education for Teachers), a Texas Education Agency-accredited curriculum, to all schools in Wood County and to our other spring site school districts.  Ozarka will sponsor local and regional training seminars, will underwrite the cost of training manuals for teachers and will create special WET accounts for teachers to purchase classroom supplies needed to implement this curriculum.  Ozarka also will make available its education facilities at the new bottling plant for classroom field trips. 

In addition, Ozarka has created an annual “Every Drop Counts” scholarship fund of $30,000.  In our spring site communities, each local ISD will receive a $2500 scholarship to be awarded to a high-school senior pursuing higher education in the Earth Sciences.  Statewide, Ozarka will award two annual $10,000 scholarships to qualifying Texas residents who wish to major in hydrogeology, or any other Earth Science, at a four-year college or university.

IX.     Emergency Relief:  NWNA is committed to providing emergency and disaster  relief to communities when the availability of a clean and dependable water supply is interrupted.

 Policy in Action:

Ozarka routinely helps out when disaster strikes, from supplying bottled water in response to contaminated water supplies to aiding relief efforts in the aftermath of hurricanes and floods.  In 1999, Ozarka was given an award by FEMA and the Texas Department of Health for its timely and generous contribution of bottled water to the flooded communities of Del Rio, Texas.

In September 2001, Nestlé Waters North America donated more than one million bottles to the rescue and recovery efforts in New York City and Washington, D.C. 

X.     Goodwill Giving:   NWNA is committed to making a positive contribution in every community in which it operates.

 Policy in Action

Ozarka has a long track record of making contributions that enhance a community’s particular way of life.  Most donations are made in collaboration with local and community groups as our corporate relationship grows and community needs are defined.   Some examples of our donations and contributions include providing water at sporting events, sponsoring school functions and water education activities, and donating refitted route trucks to fire departments.

To begin our relationship with Wood County, Ozarka will arrange for the ongoing donation of bottled water to all fire departments in the County from its new facility.  Additionally,  Ozarka will present a check to the City of Quitman for $5000 to contribute toward park improvements and to repair the roof of the of the historic pavilion in Jim Hogg Memorial Park, the center column of which dates back to 1890, fifteen years older than the Ozarka brand itself.