ENVIRONMENTAL GUIDANCE NOTES: CHEMICAL SUBSTANCES

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ENVIRONMENTAL GUIDANCE NOTES: CHEMICAL SUBSTANCES Disclaimer: The information contained in this communication document is intended solely for the use of guidance cannot be considered as a formal publication or as the formal translation. PDC/SEZAD will not be liable or accountable for any errors nor can this document be used as a legal basis. In case of doubt, please consult the relevant regulatory authority

Company SAOC REVISION Rev Status Originator Checked Approved Date A Issued for use Environmental Engineer Technical Manager PTD Sr. Manager 01/02/17 Rev A Page 2 of 9

Company SAOC Table of Contents 1 PURPOSE... 4 2 APPLICABILITY... 4 3 LEGAL FRAMEWORK... 4 4 CONTROLLED SUBSTANCES... 4 5 CHEMICAL PERMIT APPLICATION... 5 6 CHEMICAL STORAGE AND HANDLING... 5 7 CHEMICAL LABELLING... 6 8 CHEMICAL WASTE... 6 9 CHEMICAL MANAGEMENT... 6 10 ABBREVIATIONS... 7 Rev A Page 3 of 9

Company SAOC 1 PURPOSE This guide document has been developed for PDC s prospective tenants to assist and inform them the requirements for import, export, permitting, handling and storage of hazardous and controlled substances in PDC concession area. This guide provides the national framework applicable to handling of chemical substances including permitting requirements. It is to be noted that this guide is not meant to be comprehensive but only base reference to establish coherent compliance with legislative framework. The PDC Rules and Regulations dictate the practices and requirements described herein. 2 APPLICABILITY This document is applicable to all of PDC s Assets and Facilities and where PDC has operational control. 3 LEGAL FRAMEWORK Management for hazardous and controlled substances is regulated under a number of legislatives. These are: RD 46/1995 Law of handling and use of chemicals MD 37/2001 Regulations for the control and management of ozone depleting substances (ODS) MD 316/2001 Regulations barring of circulation and usage of some hazardous chemical substances including PCBs, brown and blue asbestos MD 317/2001 Regulations for the Packing, Packaging, and Labelling of Hazardous Chemicals MD 25/2009 Regulations for Organization of Handling and Use of Chemicals Public Authority of Civil Defense and Ambulance(PACDA) requirements for storage and transport Under these regulations a Chemical Permit is required for substances that are imported, exported, traded, handled, processed or stored and have a UN number or are otherwise controlled substances. The transportation and storage of chemicals requires a permit of PACDA. The Chemical Permit is issued by the SEZAD; applications for PDC s tenants need to be submitted to SEZAD. Permit applications for multiple substances can be combined in one application form for chemicals that are local purchase. Permit applications for imported chemicals may require a separate application form for each chemical substance being imported. 4 CONTROLLED SUBSATANCES Substances that are listed in one the categories below, require a chemical permit and might be subject to additional requirements. Substances listed in MD 25/2009 Hazardous Chemicals listed under UN number system: https://en.wikipedia.org/wiki/lists_of_un_numbers Chemical Precursors: http://www.cas.org/content Pesticides: refer to the Rotterdam Convention Annex III list and the principle of PIC (Prior Informed Consent) http://www.pic.int/ Ozone Depleting Substances (ODS): refer to the Montreal Protocol HTTP://WWW.UNDP.ORG/CHEMICALS/MONTREALPROTOCOL.HTM US EPA Extremely Hazardous Substances (EHS) Rev A Page 4 of 9

Company SAOC 5 CHEMICAL PERMIT APPLICATION The following document and data required for issuance of permits for chemicals 6 CHEMICAL STOGARE AND HANDLING Many chemicals have specific storage requirements because of their physical properties. Storage requirements are always specified on the Safety Data Sheets (SDSs). According to Articles No. 4 & 8, of the Law for Handling and Using Chemicals under the RD 46/95, general requirements for handling and storing chemicals include following practices, but not limited to: Renewal (Permits or Non Objection) Application letter from the company for renewal Bring the original permit or copy (the original permit is still valid) then bring the original when upon receipt New Permits Granted for hazardous chemicals A letter from the company indicating the purpose of importing the chemicals, the quanitity required and addressed to Head of Inspection and Environmental Permits Section Saftey Data Sheet (SDS) must contain: The manufucturer's logo (orignal) The name and address of the manufucturer The chemical components of the material Chemical Abstract Service Number (CAS No) and HS Code Chemical Registration Form (See appendices section) For new company it must registered in SEZAD for activity import and exportr of chemicals New Non Objection Granted for Non-hazardous chemicals Letter from the importing company indicating the purpose of importing the chemical and addressed to the Head of Ispection and Environmental Permits Section Saftey Data Sheet If material are inks, pigments ad colors, the company must attach analysis reports inicating the parcentage of PB, PCBS, Hg A letter indicating the materials of detegents, dinifectants and aromatics using in the orginal country The licensed party shall not build, expand, remove or change its store without obtaining an approval from the PACDA. The store rooftops should be designed to prevent smoke clustering in case of fire. The floor of the store should be lined with leak-proof, electric shock-proof and nonslippery materials. The structure and walls of storage should be non-flammable. The storage should have proper drainage in case of rain water penetration. The storage should be well-ventilated. Hazardous chemicals should be only stored in designated places away from industrial activities and kept at least 10m away from flammable material or combustion sources and 3m from facilities that produce flammable materials. Storing chemicals by compatibility means for example that oxidizers should be separated from organics, air/water reactive must be kept dry and inorganic cyanides should be stored away from acids. Always consult SDSs for more information Rev A Page 5 of 9

Company SAOC Chemical should be kept separated, well organized, labeled and not stacked on top each other. Spill control and clean-up materials provided and Spills and leakage should be handled in accordance with SDS. Sufficient safety equipment should be provided such as alarms, fire extinguishers, first aid kits, eye washes & emergency showers and personal protective equipment (PPE). Location signs for safety equipment, first aid equipment, and exits should be clearly demarcated on the store. Guiding and warning signs should posted on the store indicating the level and type of danger. Only authorized personnel should be allowed the access to the store. Chemical inventory must be available at all times for emergency response purposes. Limited quantities should be stored with Safety Data Sheets (SDSs) kept near the store at all time. 7 CHEMICAL LABELLING The purpose of labelling is to ensure that the contents of a container can be readily identified by product name, and to provide basic information about the contents of the container its ingredient(s), hazards and precautions for safe use. Examples of best practices are as follow: 8 CHEMICAL WASTE Labels on all incoming chemical containers cannot be removed or defaced (unless the container is empty and ready for disposal). All secondary containers must be labeled with at least the identity of the contents, health hazards (including target organs), and manufacturer name. Required PPE should be indicated (e.g. type of gloves) If an unlabelled (or wrongly labelled) container is found in the workplace, the contents should be identified and correctly labelled before the chemical is used. If the contents of a container cannot be identified, should be removed from use until its contents are identified. Waste Disposal Labels/Tags must be used to identify a waste container as "waste". Any chemical discarded, rejected, surplus or abounded is considered a waste chemical. Following practices should be taken in account when dealing with such waste such as: Chemical waste must be appropriately stored including segregation and bunding in designated secured area. Containers/receptacles used must be impervious and fit for the purpose and appropriately labelled as chemical waste. Ensure disposal process documented and implemented according to regulations and SDSs. 9 CHEMICAL MANAGEMENT Raising efficiency of chemical management can have direct impact on cost management and provide a significant advantage in terms of cost savings, inventory management, safety, risk management and handling. Implementing Best Practices that address the various aspects of chemical management can significantly reduce the extra costs in a chemical s lifecycle. Examples of these best practices includes, but not limited to: Purchase the chemicals and amounts required through implementing min/max system Reduce inventories and store only what is almost immediately needed Rev A Page 6 of 9

Company SAOC 10 ABBREVIATIONS Chemical sharing and delivery between intra-facility and inter-facility Facilitate data interchange between corporate systems (e.g. HSE and ERP/MRP systems) Streamline environmental compliance and reporting Manage and minimize hazardous waste disposal and related cost Automate repetitive and low-value tasks Develop preferred vendor relationships will ensure standardize product, delivery and negotiate best prices. Manage inventory well to accurately and efficiently maintain chemical records through using focused inventory management software or an online application. MD ODS PACDA PDC POP PPE RD SEZAD SDS Term Definition Ministerial Decision Ozone Depletion Substances Public Authority for Civil Defense and Ambulance Company SAOC Persistent Organic Pollutant Personal Protection Equipment Royal Decree Special Economic Zone Authority at Duqm Safety Data Sheet 11 APPENDICES Rev A Page 7 of 9

Company SAOC Rev A Page 8 of 9

Company SAOC Rev A Page 9 of 9