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Greenhouse Gas Emissions

The use of carbon-based fuels generates greenhouse gas emissions, yet these fuels are required in increasing amounts to meet growing demand for energy. Marathon believes that addressing concerns about climate change and GHGs will require global solutions. These solutions must implement transparent and equitable government policies, employ innovative and cost-effective technologies, and promote energy efficiency.

Our goal is to reduce GHG intensity (emissions per unit of throughput or production) 4 percent by 2013 (based on a 2008 baseline), even as we continue to grow our business. While this growth may include expanded or new capacity, increased drilling and production requiring higher energy use, Marathon will strive to use energy efficiently and manage GHG emissions intensity.

In 2010, we continued implementing our strategy to reduce GHG intensity, resulting in a one-year decrease of approximately 6 percent. Our total GHG intensity has decreased approximately 8 percent since 2008, while GHG emissions increased less than 1 percent in that same period. The increase in emissions was due to larger crude volumes resulting from the Garyville, Louisiana, refinery expansion, offset by asset divestitures.

Marathon has partial ownership but does not operate the Atlantic Methanol Production Company Limited LLC or Equatorial Guinea LNG Holdings Limited (EGLNG) assets in Equatorial Guinea. GHG emissions from these non-operated facilities are not included in the Company's reporting boundaries and are not reflected in the global totals for operated facilities. The Company does, however, have influence over operational policies and practices at these assets. GHG emissions in 2010 from these facilities totaled approximately 3.4 million tonnes CO2e with approximately 1.9 million tonnes attributable to Marathon's interests, a small decrease from 2009.

Global Partnerships

Marathon is partner in the World Bank's Global Gas Flaring Reduction Partnership (GGFR), which includes a voluntary standard aimed at eliminating the venting and flaring of associated gas.

GGFR is a public-private partnership launched at the World Summit on Sustainable Development in Johannesburg in 2002. GGFR supports the efforts of oil producing countries and companies to increase the use of associated natural gas and thus reduce flaring and venting, which wastes valuable resources and damages the environment.

We also are a charter member of the U.S. and International Natural Gas STAR programs, committed to reducing methane emissions from production operations.

In 2010, Marathon received Natural Gas STAR's Continuing Excellence Award (Five Years). The U.S. EPA presents this award based on a company submitting an annual report on a regular basis throughout the years, in conjunction with a high level of performance according to Partner of the Year criteria.