ARH - Procédure HSE (English)

‫ﺔﻴﺒﻌﺸﻟا ﺔﻴﻃاﺮﻘﻤﻳﺪﻟا ﺔﻳﺮﺋاﺰﺠﻟا ﺔﻳرﻮﻬﻤﺠﻟا‬ PEOPLE’S DEMOCRATIC REPUBLIC OF ALGERIA

‫ﻢﺟﺎـﻨﻤﻟاو ﺔﻗﺎـﻄﻟا ةرازو‬ MINISTRY OF ENERGY AND MINES

‫تﺎﻗوﺮﺤﻤﻟا ﻂﺒﺿ ﺔﻄﻠﺳ‬ HYDROCARBON REGULATORY AUTHORITY

HYDROCARBON INSTALLATION AND FACILITY HSE CONTROL PROCEDURES Phases: Engineering, Construction and Start-up Revision tracking table Document reference No.

Date of Issue

Reason of change

Associated documents Document reference No.

Date of Issue

Issued by

Checked by Surname:

HSE Audit and Control Dept. Date: Signature:

Reason

Approved by

ALLOUANI

ALLOUANI

Surname: CHEROUATI CHEROUATI

Name: Rabah Nadir

Name: Nordine

Title: HSE Division Manager

Title: ARH President

Date:

Date:

Signature:

Signature:

Reference: ARH_HSE_PR_AC_01X1

Ministry of Energy and Mines Hydrocarbon Regulatory Authority HSE Division

Hydrocarbon Installation and Facility HSE Control Procedures Phases: Engineering, Construction and Start-up

Reference : ARH_HSE_PR_AC_01 X1 Date of issue: 13 October 2009. Page 2 of 27

FOREWORD

Algerian regulations relating to installations and facilities for the hydrocarbon industry have been enhanced to ensure effective control of the risks associated with these activities in terms of workplace health and safety, installation safety, and environmental protection. In accordance with Section 13 of Hydrocarbon Law No. 05-07, as amended and supplemented by Ordnance 06-10, the Hydrocarbon Regulatory Authority (ARH) is responsible in particular for ensuring compliance with: • the technical regulations applicable to the activities subject to the aforesaid law, • regulations on hygiene, industrial safety and environment, as well as on major risk prevention and management, • the application of rules and standards established on the basis of international best practice, •

the application of penalties and fines for violations of laws and regulations. Within this framework, this procedure sets forth the Client’s obligations with respect to compliance with current regulations applicable to Category 1 and Category 2 installations and facilities in the hydrocarbon sector, during the pre-construction and construction phase and before start-up. The procedure also specifies the tasks and roles assigned to the ARH with regard to controls, audits and inspections of new projects.

PG issued in October 2009

Ministry of Energy and Mines Hydrocarbon Regulatory Authority HSE Division

Hydrocarbon Installation and Facility HSE Control Procedures Phases: Engineering, Construction and Start-up

Reference: ARH_HSE_PR_AC_01 X1 Date of issue: 13 October 2009. Page 3 of 27

Contents FOREWORD...........................................................................................................................................................................2 1 1.1 1.2 1.3 1.4 1.5 1.6 1.7

OVERVIEW….. ............................................................................................................................................................4 INTRODUCTION .......................................................................................................................................................4 DEFINITIONS. ..........................................................................................................................................................4 SCOPE OF PROCEDURE ...........................................................................................................................................4 DOCUMENT TRANSMISSION METHOD……… ............................................................................................................5 DOCUMENT TRANSMISSION AND PROCESSING TIME LIMITS: ...................................................................................5 PROJECT PROGRESS STATUS INFORMATION ............................................................................................................6 APPLICABLE REGULATORY REQUIREMENTS... .................................................................... ....................................6

2 HSE CONTROL PROCEDURE APPLICABLE PRIOR TO HYDROCARBON INSTALLATION CONSTRUCTION PHASE. ................................................................................................................................................7 2.1 2.2 2.3 2.4

ENVIRONMENTAL IMPACT ASSESSMENT…..........................................................................................................................................7 HAZARD ASSESSMENT.......................................................................................................................... .............. ..7 PRIOR APPROVAL TO THE CREATION OF A CLASSIFIED FACILITY....................................... ……………………....7 EXTENSION OR MODIFICATION OF HYDROCARBON INSTALLATIONS AND FACILITIES ............. ...............................8

3 HSE CONTROL PROCEDURE APPLICABLE DURING HYDROCARBON INSTALLATION AND FACILITY CONSTRUCTION PHASE. ............................................................................................................................9 3.1 3.2

REGULATORY COMPLIANCE CHECK ON THE PRELIMINARY HSE DOCUMENTS .........…............................................9 HSE AUDITS AND INSPECTIONS DURING THE CONSTRUCTION PHASE ....................................................................9

4 HSE CONTROL PROCEDURE APPLICABLE PRIOR TO START-UP OF HYDROCARBON INSTALLATIONS AND FACILITIES. ....................................................................................... ……………………....10 4.1 4.2 4.3 4.4

FINAL HSE DOCUMENTS BEFORE INSTALLATION AND FACILITY START-UP. .........................................................10 TESTING OF PROTECTION SYSTEMS BEFORE START-UP…………………....................................................................10 GRANTING OF START-UP AUTHORIZATION BY THE ARH……… ..........................................................................10 GRANTING OF AUTHORIZATION TO OPERATE THE CLASSIFIED FACILITY .................................................................7

ANNEX I: LIST OF PROTECTION SYSTEMS IN A HYDROCARBON INSTALLATION ........................................................ 12 ANNEX II: LIST OF HUMAN AND MATERIAL RESOURCES AVAILABLE FOR OCCUPATIONAL MEDICINE ............ 13 ANNEX III: SAFETY MANAGEMENT SYSTEM (SGS).................................................................................................................... 14 ANNEX IV: ENVIRONMENTAL MANAGEMENT PLAN (PGE) .................................................................................................... 17 ANNEX V: INTERNAL INTERVENTION PLAN ................................................................................................................................ 21 ANNEX VI: HSE PREVENTION PLAN DURING THE CONSTRUCTION PHASE .................................................. 22 ANNEX VII: APPLICABLE REGULATORY REQUIREMENTS........................................................................................................ 25

PG issued in October 2009

Ministry of Energy and Mines Hydrocarbon Regulatory Authority HSE Division

Hydrocarbon Installation and Facility HSE Control Procedures Phases: Engineering, Construction and Start-up

1

Reference: ARH_HSE_PR_AC_01 X1 Date of issue: 13 October 2009. Page 4 of 27

OVERVIEW

1.1 Introduction In the last few years, classified installation regulations have been strengthened to ensure effective control of the risks associated with their operation in terms of workplace health, safety and environment. The procedure described below is set up as part of a process to apply more stringent criteria to all regulations in force applicable to Category 1 and 2 classified installations related to the hydrocarbon industry.

− − − − − − − − − − − − − − − − − − − − −

1.2 Definitions HSE: Health Safety & Environment HAZOP: Hazard & Operability Study HAZID: Hazard Identification Study SIL: Safety Integrity Level QRA: Quantitative Risk Assessment SGS: Safety Management System PII: Internal Intervention Plan PAM: Mutual Assistance Plan PPI: Specific Intervention Plan PGE: Environmental Management Plan EIE: Environmental Impact Assessment EDD: Hazard Assessment ALARP: As Low As Reasonably Practicable JPSA: Job Plan Safety Analysis MEM: Ministère de l’Energie et des Mines (Ministry of Energy and Mines) ARH Autorité de Régulation des Hydrocarbures (Hydrocarbon Regulatory Authority) MATET: Ministère de l’Aménagement du Territoire, de l’Environnement et du Tourisme (Ministry of Territory, Environment and Tourism Management) Hydrocarbon Activities: hydrocarbon research, exploitation, pipeline transport, refining and processing activities; sale, storage, and distribution of oil products as well as the facilities and installations used to conduct such activities Installation: The set of facilities pertaining to the hydrocarbon industry Project: Any activity performed for the creation or modification of an installation or facility pertaining to the hydrocarbon industry Suspensive conditions: Conditions which suspend the authorization procedure until they are fulfilled. 1.3 Scope of procedure The purpose of this procedure is to set forth the Client’s obligations with respect to compliance with regulations relating to:

− − − − −

Control of HSE regulatory documents, i.e. environmental impact assessment and hazard assessment, prior to the construction phase, Regulatory compliance checks on the preliminary HSE documents prepared during the engineering phase, HSE audits and inspections during the construction phase, Regulatory compliance checks on the final HSE documents prior to start-up, Regulatory testing of industrial safety systems PG issued in October 2009

Ministry of Energy and Mines Hydrocarbon Regulatory Authority HSE Division

Hydrocarbon Installation and Facility HSE Control Procedures Phases: Engineering, Construction and Start-up

Reference: ARH_HSE_PR_AC_01 X1 Date of issue: 13 October 2009. Page 5 of 27

1.4 Document transmission method All the documents mentioned in this procedure shall be transmitted in French. When the original document is prepared in English, the Client shall transmit both versions (English and French) to the ARH. The transmission method and the location where the documents mentioned in this procedure can be viewed are described in Table 1.3 below: Table 1.3 Document transmission method and processing location Format

Documents

Electronic

Paper

EIE, EDD

X

X

Prevention plan

X

X

Hazard assessment

X

Descriptions and calculation notes

X

X

Drawings

X

X

Preliminary action plans Final action plans

X X

X X X

X

X

X

Minutes PII, SGS, PGE (before start-up) Preliminary HSE documents Final HSE documents

At site

X

Viewing At the ARH

X X

X

X

X

X

X X

As described above X

1.5 Document transmission and processing time limit: The Client is required to validate all documents before transmitting them to the ARH. The time limits in Table 1.4 (excluding those that constitute regulatory requirements) are provided indicatively to facilitate document management. Table 1.4 Document transmission and processing time limits Documents EDD and EIE Prevention plan

Time limit for transmission by Client

Time limit for processing by the ARH

In accordance with decrees 06-198 and 08-312 Before site mobilization

1 week with notice

PG issued in October 2009

Ministry of Energy and Mines Hydrocarbon Regulatory Authority HSE Division

Hydrocarbon Installation and Facility HSE Control Procedures Phases: Engineering, Construction and Start-up

Reference: ARH_HSE_PR_AC_01 X1 Date of issue: 13 October 2009. Page 6 of 27

Preliminary HSE documents

As soon as finalized

3 weeks

Final HSE documents and on site regulatory tests

At least 2 weeks before the date 1 scheduled for on site visit

2 weeks

Start-up application

As soon as all HSE and technical control suspensive 2 conditions are fulfilled

1 week

authorization

(1) The Client shall transmit a letter of invitation to the ARH for on-site processing of the final documents. (2) The application for start-up authorization must be submitted by the Client to the Chairman of the ARH Steering Committee.

− − −

1.6 Project progress status information The Client shall regularly report to the ARH on project progress as described below: First presentation: after filing the EIE and the EDD with the ARH, the Client shall submit a project presentation to the AHR. The presentation shall contain a general description of the project, as well as the results of the regulatory EIE and EDD assessments. Second presentation: once the risk assessments are completed (HAZID, HAZOP, SIL, QRA, etc.), the Client shall submit to the ARH the results of these studies as well as the related action plans. Third presentation: the Client shall provide an on-site presentation of the final HSE documents before proceeding to perform the regulatory tests in the presence of ARH. This presentation shall include the actions undertaken as a result of the risk assessments, as well as updates to the regulatory documents, i.e. PII, PGE and SGS. 1.7 Applicable regulatory requirements Hydrocarbon facility projects and installations are subject to the national regulations in force, a nonexhaustive list of which is provided in Annex VII.

PG issued in October 2009

Ministry of Energy and Mines Hydrocarbon Regulatory Authority HSE Division

2

Hydrocarbon Installation and Facility HSE Control Procedures Phases: Engineering, Construction and Start-up

Reference: ARH_HSE_PR_AC_01 X1 Date of issue: 13 October 2009. Page 7 of 27

HSE CONTROL PROCEDURE APPLICABLE PRIOR TO HYDROCARBON INSTALLATION CONSTRUCTION PHASE. 2.1 Environmental Impact Assessment Before commencing any of the activities regulated under Hydrocarbon Law No. 05-07, the Client shall submit an Environmental Impact Assessment (EIE), including an Environmental Management Plan (PGE) to the ARH for approval. The minimum contents to be included in the PGE are described in Annex IV. The filing procedure and methods of approval of the EIE, including the PGE, are described in Executive Decree No. 08-312, which sets forth the terms and conditions for approval of Environmental Impact Assessments for hydrocarbon activities. 2.2 Hazard Assessment Before commencing any activity regulated under Hydrocarbon Law No. 05-07, the Client shall submit a Hazard Assessment (EDD) to the ARH for review; the EDD shall include the description of an Internal Intervention Plan (PII) in accordance with Section 62, Law No. 04-20 on the prevention of major risks and disaster management within a sustainable development framework, as well as a Safety Management System (SGS) in accordance with Section 14, paragraph 7 of Executive Decree No. 06-198 which sets forth the requirements applicable to classified facilities for environmental protection in classified installations. The minimum contents to be included in the SGS are described in Annex III. Once the Hazard Assessment is filed with the ARH, the latter shall review its content in accordance with Section 13 of Hydrocarbon Law No. 05-07, verifying compliance with: − regulations on health, industrial safety, environment, as well as major risk prevention and management (in particular, Law No. 04-20 and Executive Decree No. 06-198); − the application of rules and standards established on the basis of international best practices. In case of non-compliance with said regulations and standards, the ARH notifies its reserves to the Client, who shall take the appropriate corrective actions. Once a positive opinion has been issued by ARH, the Hazard Assessment may be filed with the Wali of the wilaya involved. 2.3 Prior approval to the creation of a classified facility Once the Environmental Impact Assessment is approved by the ARH in accordance with Executive Decree No. 08-312 and the Hazard Assessment’s regulatory compliance is verified, the Client shall initiate the steps to apply for authorization to operate a classified facility, in accordance with Executive Decree No. 06-198, particularly Sections 5 through 8. When prior approval to the creation of a classified facility is granted by the wilaya’s classified facility control Board, in accordance with Sections 16 and 17 of Executive Decree No. 06-198, the Client shall transmit a copy to the ARH.

PG issued in October 2009

Ministry of Energy and Mines Hydrocarbon Regulatory Authority HSE Division

Hydrocarbon Installation and Facility HSE Control Procedures Phases: Engineering, Construction and Start-up

Reference: ARH_HSE_PR_AC_01 X1 Date of issue: 13 October 2009. Page 8 of 27

Pursuant to Section 18 of Executive Decree No. 06-198, no construction work of any classified facility may be started by the Developer before obtaining the prior approval as described above, unless derogation is granted. 2.4 Extension or modification of hydrocarbon installations and facilities In accordance with Section 38 of Executive Decree No. 06-198, any modification to the classified facility, including changes to the activity, process, or equipment, or the extension of activities, shall require a new application for authorization to operate a classified facility or a new statement. It is understood that a new application for authorization to operate a classified facility shall require a new Environmental Impact Assessment and a new Hazard Assessment. The regulatory assessments (EIE and EDD) shall be treated as set forth in sections 2.1 and 2.2.

PG issued in October 2009

Ministry of Energy and Mines Hydrocarbon Regulatory Authority HSE Division

3

Hydrocarbon Installation and Facility HSE Control Procedures Phases: Engineering, Construction and Start-up

Reference: ARH_HSE_PR_AC_01 X1 Date of issue: 13 October 2009. Page 9 of 27

HSE CONTROL PROCEDURE APPLICABLE DURING HYDROCARBON INSTALLATION AND FACILITY CONSTRUCTION PHASE.

3.1 Regulatory compliance check on the preliminary HSE documents During the engineering phase of the facilities and installations, the Client shall transmit to the ARH the Preliminary HSE documents containing: −

− − − − −

An electronic copy of the results of the Hazard Assessments (such as HAZOP, HAZID, SIL, QRA, etc.), identifying passive and active protection barriers. The ARH may request guarantees as to the reliability of the risk assessment methods used, and may seek review by a third-party expert for the entire duration of the project, if appropriate. The expertise shall be at the Client’s expense. The action plans based on the recommendations issued from the risk assessments referred to above, The specifications and calculations relating to facility protection systems, for review and validation. A non-exhaustive list of the systems involved is provided in Annex I The specifications of mobile and portable fire-fighting equipment; A description of regulatory wastewater and air emission monitoring systems; A description of planned resources, installations and equipment for the provision of occupational medical care. Minimum regulatory conditions are set forth in Annex II. 3.2 HSE audits and inspections during the construction phase The Client shall prepare an HSE Prevention Plan covering all risks existing during the entire construction phase. An electronic copy of the plan must be transmitted to the ARH before site mobilisation. The ARH shall acknowledge receipt of the plan after reviewing its contents, and may request revisions. A model prevention plan is provided in Annex VI As part of its prerogatives, the ARH has the authority to conduct audits and inspections on the facility during the construction phase, to monitor compliance with HSE regulations and proper implementation of the prevention plan.

PG issued in October 2009

Ministry of Energy and Mines Hydrocarbon Regulatory Authority HSE Division

4

Hydrocarbon Installation and Facility HSE Control Procedures Phases: Engineering, Construction and Start-up

Reference: ARH_HSE_PR_AC_01 X1 Date of issue: 13 October 2009. Page 10 of 27

HSE CONTROL PROCEDURE APPLICABLE PRIOR TO START-UP OF HYDROCARBON INSTALLATIONS AND FACILITIES.

The authorization to start up the installations is issued to the Client by the ARH by decision of the ARH Executive Committee. The start-up authorization shall not be granted unless the Client meets all regulatory requirements in force, the HSE portion of which is described below. 4.1 Final HSE documents before installation and facility start-up. Upon completion of the construction phase, the Client shall update the preliminary HSE documents so as to set up the Final HSE documents, the regulatory compliance of which shall be checked by the ARH on site. The Final HSE documents shall consist of the following: − − − − − −

−

Updated preliminary HSE documents, including “as built” documents; HSE system pre-commissioning reports; HSE system testing procedures; The implemented action plans based on the recommendations issued from the risk assessments, referred to in 3.1 above; The updated SGS and PGE taking into account the changes made to the originally provided Environmental Impact Assessment and the Hazard Assessment; The PII defining all emergency measures, human resources, fixed and mobile equipment in place, as well as rescue and intervention, on the basis of the major incidents indicated in the hazard assessment. 4.2 Testing of protection systems before start-up Upon approval by the ARH of the final HSE documents as described above, the facility’s protection systems shall undergo performance tests in the presence of the ARH or of the designated organisation. Such tests shall be documented by a report;

−

Any suspensive condition shall be notified to the Client by ARH within 10 days after the performance tests are conducted;

−

The Client may not seek the issuance of a start-up authorization before all suspensive conditions are fulfilled;

−

If any non-suspensive conditions are posed, subject to decision by the ARH Executive Committee, the Client may obtain authorization to start up the facility or installation provided that all non-suspensive conditions be fulfilled within a time limit set by the ARH and indicated in the decision to authorize the start-up. 4.3 Granting of start-up authorization by the ARH Authorization to start up the hydrocarbon installation or facility is issued by the ARH to the Client by a decision of the ARH Executive Committee on the basis of the results of HSE and technical audits and inspections.

PG issued in October 2009

Ministry of Energy and Mines Hydrocarbon Regulatory Authority HSE Division

Hydrocarbon Installation and Facility HSE Control Procedures Phases: Engineering, Construction and Start-up

Reference: ARH_HSE_PR_AC_01 X1 Date of issue: 13 October 2009. Page 11 of 27

4.4 Granting of authorization to operate the classified facility In accordance with Sections 19 and 20 of Executive Decree No. 06-198: • Authorization to operate a classified facility shall only be granted after an on-site visit by the wilaya’s Board upon completion of the classified facility, to verify its compliance with the documents filed with the application and with prior approval terms and conditions; • The authorization to operate the classified facility shall be issued, as the case may be: − by joint order of the Minister of the Environment and of the Minister of Hydrocarbons, for facilities classified as Category 1; − by order of the wali having territorial jurisdiction, for facilities classified as Category 2; − by order of the chairman of the Communal Popular Assembly having territorial jurisdiction, for facilities classified as Category 3. For facilities classified as Category 1, the Ministers’ order authorizing the operation is dependant on the prior granting of the Start-up Authorization by the ARH. In accordance with Sections 21 of Executive Decree No. 06-198: The order of authorization to operate the classified facility sets forth appropriate specific technical prescriptions to prevent, reduce and/or eliminate emissions, pollution and environmental hazards generated by the classified facility.

PG issued in October 2009

Ministry of Energy and Mines Hydrocarbon Regulatory Authority HSE Division

Hydrocarbon Installation and Facility HSE Control Procedures Phases: Engineering, Construction and Start-up

Reference: ARH_HSE_PR_AC_01 X1 Date of issue: 13 October 2009. Page 12 of 27

Annex I: List of protection systems in a hydrocarbon installation − Emergency Shutdown Procedures − Fire and gas detection system − Fixed fire fighting systems: • Fire fighting pumping stations • Fire fighting networks • Cooling systems • Water extinguishing system (RIA, water cannons, posts, deluge, water spray, water mist, etc.) • Foam extinguishing system • Inert gas (CO2, FM200 etc.) extinguishing system • Dry powder extinguishing system − Passive fire protection system − Alarm system − Signalling system − Classification of areas for electrical equipment − Electrical equipment approved for explosive atmospheres − Means of emergency evacuation and mustering of personnel − Equipment overpressure protection system − Equipment overfill protection system − Corrosion protection system − Earthing system − Safety showers and eye wash stations − Mobile equipment • Fire fighting vehicles (VMR, PG, PS type trucks) • Rescue vehicles (ambulance, anti-entrapment vehicle, etc.) • Towable fire-fighting equipment − Portable fire-fighting equipment (extinguishers etc.) − Emulsifier and dry powder storage

PG issued in October 2009

Ministry of Energy and Mines Hydrocarbon Regulatory Authority HSE Division

Hydrocarbon Installation and Facility HSE Control Procedures Phases: Engineering, Construction and Start-up

Reference: ARH_HSE_PR_AC_01 X1 Date of issue: 13 October 2009. Page 13 of 27

Annex II: List of human and material resources available for occupational medicine (Pursuant to Order dated 16 October 2001 setting forth the standards relating to human resources, spaces and equipment for occupational medicine services.) A. Human resources: − 1 full-time occupational physician for 1730 workers highly exposed to occupational risks. − 1 full-time occupational physician for 2595 workers moderately exposed to occupational risks. − For organisations employing workers highly exposed to occupational risks: • 1 nurse for 200 or more workers, • 2 nurses for 800 - 2000 workers. • For more than 2000 workers: 1 extra nurse per 1000 additional workers. − For organisations employing workers with moderate to low occupational risk exposure: • 1 nurse for 500 or more workers, • 2 nurses for 1000 or more workers, • 1 medical secretary if more than 2 physicians are on site. B. Material resources − − − − − − − − − − − − −

One office per full-time physician, One treatment and supplementary exams room, 1 medical secretary’s office if more than 2 physicians are on site. A waiting room, Sanitary facilities nearby, An examination room with bed for organisations with more than 2000 employees, All instruments required for a complete clinical examination per office, Height gauge and scale unit for biometric examinations, An optometric scale for vision examination, A negatoscope per medical office to view x-rays, A filing cabinet to file medical records under conditions of medical confidentiality, All materials required for standard laboratory tests, Special equipment for functional investigations and measurements on work environment, depending on the specific situations.

PG issued in October 2009

Ministry of Energy and Mines Hydrocarbon Regulatory Authority HSE Division

Hydrocarbon Installation and Facility HSE Control Procedures Phases: Engineering, Construction and Start-up

Reference: ARH_HSE_PR_AC_01 X1 Date of issue: 13 October 2009. Page 14 of 27

Annex III: Safety Management System (SGS) 1 Purpose This annex is intended as a guide for the Client to set up a safety management system. It prescribes which elements, at a minimum, should make up an SGS. 2 Safety Management System The SGS is a documented tool available to the Client, providing better management and continuous improvement of its organisation. The purpose of its implementation is to create a safety culture. The SGS defines the organisation, responsibilities, procedures and resources that allow the achievement of HSE goals. The SGS contains specific provisions regarding the following aspects of the activity: − Organisation, − Risk identification and assessment, − In-depth knowledge of the processes and operations, − Training − Document management − Change Management, − Emergency Management, − Feedback Management, − Contractor safety responsibilities, − Reporting and analysis of accidents and near accidents, − Internal audits, − Management reviews. 2.1 Organisation: The installation manager shall determine the roles of the different people responsible for safety (tasks, responsibilities, obligations, etc.) involved in the SGS process. S/he shall consult, inform and train personnel and their representatives so that they interiorize the process. 2.2 Hazard identification and risk assessment: The installation manager shall identify hazards and assess the risks inherent in its operation. S/he shall implement an action plan defining prevention measures appropriate for the assessed risks.

PG issued in October 2009

Ministry of Energy and Mines Hydrocarbon Regulatory Authority HSE Division

Hydrocarbon Installation and Facility HSE Control Procedures Phases: Engineering, Construction and Start-up

Reference: ARH_HSE_PR_AC_01 X1 Date of issue: 13 October 2009. Page 15 of 27

2.3 In-depth knowledge of the processes and operations: The installation manager shall identify sensitive equipment requiring special attention in terms of maintenance and operation. The installation manager shall set up procedures to achieve in-depth knowledge of safe installation processes and operation, such as starting and stopping, as well as servicing and maintenance operations. 2.4

Training

The installation manager shall identify personnel training needs, implement the training programme, and evaluate its quality. S/he shall make sure that this process is maintained, evaluated and improved throughout installation operation. 2.5 Document management The installation manager shall implement a document management system providing for: − The recording and tracking of SGS documents − The updating of procedures, instructions, operating methods and technical documents − The recall of superseded document versions − Monitoring of legal and regulatory compliance 2.6 Change Management: The installation manager shall implement a strict management of all changes involving the installations, the processes, the products or the organisation, which may affect risk control. Changes shall require the updating of the relevant documents. 2.7 Emergency Management: The installation manager shall develop and implement an emergency management plan for each identified risk. The plan shall include, among others, the PII at unit level, the PAM at area level in cooperation with the other units, and the PPI with the corresponding wilaya. 2.8 Feedback Management: The installation manager shall implement a system to leverage feedback information in order to ensure constant safety improvement. A specific log of significant events shall be set up for this purpose.

PG issued in October 2009

Ministry of Energy and Mines Hydrocarbon Regulatory Authority HSE Division

Hydrocarbon Installation and Facility HSE Control Procedures Phases: Engineering, Construction and Start-up

Reference: ARH_HSE_PR_AC_01 X1 Date of issue: 13 October 2009. Page 16 of 27

2.9 Contractor safety responsibilities: A written agreement shall be entered into between the installation manager and the contractor, clearly specifying each party's responsibility and serving as a basis to define the contractors’ assignment. 2.10 Reporting and analysis of accidents and near accidents: The installation manager shall set up a procedure for the reporting and analysis of accidents and near accidents, in order to identify the direct and indirect causes as well as their consequences. 2.11 Internal audits: The installation manager shall conduct periodical internal audits to evaluate the safety management system’s effectiveness with respect to the regulations, the set goals, and the standards. Appropriate actions plans shall be developed and implemented as a result of these audits. 2.12 Management reviews: The installation manager shall hold periodical documented SGS management reviews for the purpose of reassessing overall objectives and allocate the resources required for their achievement.

PG issued in October 2009

Ministry of Energy and Mines Hydrocarbon Regulatory Authority HSE Division

Hydrocarbon Installation and Facility HSE Control Procedures Phases: Engineering, Construction and Start-up

Reference: ARH_HSE_PR_AC_01 X1 Date of issue: 13 October 2009. Page 17 of 27

Annex IV: Environmental Management Plan (PGE) 1 Purpose The purpose of the Environmental Management Plan is to set up the necessary and adequate tools to eliminate, mitigate and/or compensate the environmental impact identified in the Impact Assessment throughout the construction and operation of the installations and facilities. 2 Environmental Management Plan The elements composing the PGE must be documented. The Plan shall include, among others: − Natural resource utilization optimization plan − Environmental impact monitoring and tracking programme − Environmental education and awareness plan − Change Management − Waste management plan − Wastewater management plan − Air emission management plan − Chemicals management plan − Pollution management plan − Pollution prevention and control plan − Intervention plan in case of pollution − Contaminated sites and soil management plan − Environmental audit programme − Site abandonment and restoration programme 2.1 Natural resource utilization optimization plan This plan shall identify the processes and techniques that ensure a rational utilization of natural resources. 2.2 Environmental impact monitoring and tracking programme: The plan shall be designed to track and monitor the impacts of wastewater, air emissions, waste and pollution. It shall determine the methods, parameters, points and frequency of the measurements. The results of these measurements shall be recorded, maintained, and made available to the designated control functions. 2.3 Environmental education and awareness plan: The Client shall inform and educate personnel particularly on the following: − National environmental policy, − Regulatory requirements, − Health and environmental impacts of the handled products, − Significant environmental impacts resulting from the activities, − Environmental protection roles and responsibilities, − Internal and external communication. PG issued in October 2009

Ministry of Energy and Mines Hydrocarbon Regulatory Authority HSE Division

Hydrocarbon Installation and Facility HSE Control Procedures Phases: Engineering, Construction and Start-up

Reference: ARH_HSE_PR_AC_01 X1 Date of issue: 13 October 2009. Page 18 of 27

2.4 Change Management: A change management process shall be developed to ensure that the environmental impact of changes is as small as possible. 2.5 Waste Management Plan: The management of all waste generated by the installation shall follow a specific plan depending on sorting, recovery, reutilization, reduction, recycling, enhancement, elimination, and regulated storage capacities. The plan shall contain specifications and/or requirements to help subcontractors adhere to the implemented programme. To ensure the traceability of special waste processing, a waste output log shall be set in place describing the types and amounts of waste, the disposal locations, and the treatment of all waste. 2.6 Wastewater management plan: At a minimum, the plan shall include the following: − Regulatory requirements applicable to wastewater − A list of discharge points and their respective characteristics − Records of the results of qualitative and quantitative analyses − The wastewater system diagram − The specifications of the selected treatment 2.7 Air emission management plan: At a minimum, the plan shall include the following: − Regulatory requirements applicable to air emissions − A list of emission points and their respective characteristics, − Records of the results of qualitative and quantitative analyses of air emissions − An air emission monitoring programme. 2.8 Chemicals management plan: At a minimum, the plan shall include the following: − Acquisition of hazardous substances: subject to a selection procedure to ensure that the acquired substance presents minimal impacts on workers' health and the environment. − Transport: the requirements related to driver’s certification transport vehicle compliance, and class of the hazardous substance shall be considered. − Storage conditions: personnel and the environment must be protected against any risk inherent to material storage. − Chemical risk information: based on the Material Safety Data Sheet (MSDS), including 16 sections containing critical data for the implementation of protection measures. − Training: with special focus on personnel awareness of the risks associated with the handling and use of hazardous substances. − Personnel protection against chemical risks: this must be ensured by the employer through the adoption of all necessary measures, and in particular through the performance of medical checkups and the implementation of evacuation and emergency devices.

PG issued in October 2009

Ministry of Energy and Mines Hydrocarbon Regulatory Authority HSE Division

Hydrocarbon Installation and Facility HSE Control Procedures Phases: Engineering, Construction and Start-up

Reference: ARH_HSE_PR_AC_01 X1 Date of issue: 13 October 2009. Page 19 of 27

2.9 Pollution management plan: At a minimum, the plan shall include the following: − Regulatory requirements applicable to pollution − A list of existing polluting elements, including dusts, odours, noise, etc. − A list of the sources of pollution. − A pollution monitoring programme. 2.10 Pollution prevention and control plan: The plan shall consist, at a minimum, of prevention measures for the elimination, reduction or control of environmental aspects. Such measures may include recycling, product or material replacement, and process modifications or improvements. The pollution prevention plan shall be revised as a result of: − New regulations on the subject − Feedback information / lessons learned − Analysis results not compliant with the requirements under any regulation or standard. 2.11 Intervention plan in case of pollution: The installation manager shall develop and implement a management plan for each type of pollution previously identified in the EIE, EDD and environmental audits. In particular, the plan shall include emergency procedures with guidelines to assess the effects and descriptions of the measures to undertake in case of pollution. 2.12 Contaminated sites and soil management plan At a minimum, the plan shall provide for the following: − Identification of contaminated soil and of the size and nature of the pollution. − Implementation of an appropriate method for the removal of contaminated soil. − Checks on the quality of the soil after excavation. − Filling of the excavated area. − Treatment of recovered contaminated soil using an appropriate method. − Treated area follow-up programme. − Personnel training on the risks associated with contaminants. − Documents of all plan phases. 2.13 Environmental audit programme The plan shall provide for: − The identification of deviations from regulatory and standard requirements − An evaluation of the effectiveness of the implemented preventive measures − The use of audit results in a perspective of continuous improvement.

PG issued in October 2009

Ministry of Energy and Mines Hydrocarbon Regulatory Authority HSE Division

Hydrocarbon Installation and Facility HSE Control Procedures Phases: Engineering, Construction and Start-up

Reference: ARH_HSE_PR_AC_01 X1 Date of issue: 13 October 2009. Page 20 of 27

2.14 Site abandonment and restoration programme: If the construction works are abandoned or upon completion of a project, the plan shall provide, at a minimum, for the following: − evacuation or elimination of hazardous products and waste existing at the site − clean-up of any polluted soil and treatment of any polluted groundwater − site restoration steps − site monitoring methods, if necessary.

PG issued in October 2009

Ministry of Energy and Mines Hydrocarbon Regulatory Authority HSE Division

Hydrocarbon Installation and Facility HSE Control Procedures Phases: Engineering, Construction and Start-up

Reference: ARH_HSE_PR_AC_01 X1 Date of issue: 13 October 2009. Page 21 of 27

Annex V: Internal Intervention Plan The internal intervention plan shall contain the following information: 1. Installation of facility geographical situation: this document contains information to evaluate the environment affected by the impact of major incidents. It consists of: a.

b.

A location plan: describing the position of the installation within the municipality, environmental characteristics, geographic coordinates, routes of communication, VRDs (Roads and Miscellaneous Networks), etc. Mass plan: describing the sectors at risk as well as the breakdown of flows such as fluids, energies, hazardous products, etc.

2. Alert plan: describing alert methods and procedure 3. Headquarters: Describing the procedure for the establishment of the headquarters, as well as each member’s roles and responsibilities. 4. Movement plan and action plans: A set of emergency procedures corresponding to the different scenarios previously identified in the Hazard Assessment and in the Risk Assessments, if any. 5. Incident scenarios and intervention strategies: A set of attack plans for the control of major incident scenarios, describing the human resources and materials deployed. 6. Means of intervention including human resources, materials and logistics available on site, as well as the personnel and equipment deployed for each major risk intervention scenario. 7. Rescue operations: describing the organisation, specifying the roles and responsibilities, and the available equipment for rescue operations, as well as their deployment for each intervention scenario. 8. Emergency personnel contacts: providing contact information for key emergency plan personnel and ensuring that they are updated, 9. Logistics: describing the logistic facilities available on site 10. Communication: describing the interface between the PII and the different emergency plans 11. Information: regarding the involved communities who must be informed of the main risks associated with the installation as well as on the behaviour to be adopted in case of alert. The local community must also be informed at the time of launching the PII. 12. Simulation drill: Simulation drills are intended to prove the plan’s effectiveness and must be conducted regularly.

PG issued in October 2009

Ministry of Energy and Mines Hydrocarbon Regulatory Authority HSE Division

Hydrocarbon Installation and Facility HSE Control Procedures Phases: Engineering, Construction and Start-up

Reference: ARH_HSE_PR_AC_01 X1 Date of issue: 13 October 2009. Page 22 of 27

Annex VI: Model HSE prevention plan during the construction phase The HSE prevention plan must be prepared before site mobilisation. The plan shall be implemented by the Client, the contractor, the subcontractor, and any other party involved in the project. The purpose of the plan is to protect health, safety and the environment by eliminating hazards at the source and controlling the inherent risks. At a minimum, the plan shall include the following: − Project description − HSE policy − Training and qualification − Work preparation and organisation − Subcontract control − Result evaluation − Continuous improvement follow-up. 1 Project description: At a minimum, the plan shall include the following: − − −

Establishment plan and indications of project location; Project organisation and definition of tasks and responsibilities Work schedule and personnel mobilisation plan.

2 HSE policy −HSE commitment: An HSE charter shall be prepared and signed by the Client and the contractor, and must be adhered to by the subcontractors and any other party involved in the project. The charter shall be posted and distributed in the project site. −Purpose: The HSE charter defines the project’s general objectives. These objectives shall provide the basis for the action plans implemented. −Regulatory monitoring: The plan shall be compliant with regulatory requirements and shall be updated to reflect any new provisions enforced. −Organisation: The plan shall contain a description of the organisation that has been set up, indicating the functions involved in prevention and supplementing HSE objectives. −Internal rules: The plan shall define the procedures, instructions and directions most suitable to site risks. Internal rules must be distributed to all parties involved in the project.

PG issued in October 2009

Ministry of Energy and Mines Hydrocarbon Regulatory Authority HSE Division

3

Hydrocarbon Installation and Facility HSE Control Procedures Phases: Engineering, Construction and Start-up

Reference: ARH_HSE_PR_AC_01 X1 Date of issue: 13 October 2009. Page 23 of 27

Training and qualification

− Training: The plan shall define a training, education and awareness programme on the basis of the risks associated with the activities, to be delivered to all parties involved in site activities. − Qualification: The plan shall indicate the methods to verify and evaluate the qualification of the parties involved in site activities, particularly those at risk, such as: lifting, radiography, electrical works, etc. 4

Work preparation and organisation

− Planning and timeframe: The plan shall contain the planning of project works, providing for the risks associated with simultaneous works. Any planning changes must be notified to all parties involved in site activities, allowing enough time to control the consequent risks. − Risk prevention, identification and analysis plan: The plan shall contain an analysis of the risks associated with the regularly performed activities, in particular an assessment of workplace risks. It shall also include the Material Safety Data Sheets (MSDS) for currently used products or substances, which must be summarized in a form that can be used by all participants in site activities. − Change processing: Any change with significant safety effects on the nature of tasks, their execution sequence, or the planning shall be subject to a risk analysis. − Work authorizations: The plan shall contain the general and specific procedures for work authorizations, burning permit, excavation permit, penetration permit, and any other work authorizations required to control the risks associated with the activities. − Methods and equipment: The plan shall set forth all the methods and equipment to be implemented for the control of site risks. It shall include, among others: • Document management procedure, • Collective and personal protection equipment, • The appropriate equipment and tools to execute the works, • Work procedures, • Material verification procedures, • Premise and workplace inspection procedures − Handling of emergency situations: The plan shall contain an emergency procedure, providing for the handling of any emergency situation that may arise on site. 5 Subcontract control The prevention plan shall contain clear requirements on the following (among others): • Subcontracting policy • Safety

considerations

• Subcontractor performance monitoring

PG issued in October 2009

Ministry of Energy and Mines Hydrocarbon Regulatory Authority HSE Division

6

Hydrocarbon Installation and Facility HSE Control Procedures Phases: Engineering, Construction and Start-up

Reference: ARH_HSE_PR_AC_01 X1 Date of issue: 13 October 2009. Page 24 of 27

Result evaluation

The plan shall allow for the monitoring and evaluation of HSE performance indicators, and provide – among others – for safety results and feedback. 7

Continuous improvement follow-up.

To ensure continuous improvement in HSE performance, the prevention plan shall define the procedures to be implemented in connection with: • Inspections and audits, • Corrective actions and non-conformities, and • Management reviews.

PG issued in October 2009

Ministry of Energy and Mines Hydrocarbon Regulatory Authority HSE Division

Hydrocarbon Installation and Facility HSE Control Procedures Phases: Engineering, Construction and Start-up

Reference: ARH_HSE_PR_AC_01 X1 Date of issue: 13 October 2009. Page 25 of 27

Annex VII: Applicable regulatory requirements • Ordnance No. 06-10 of 29 July 2006 as amended, supplementing law No. 05-07 • Water Law No. 05-12 of 4 August 2005 • Hydrocarbon Law No. 05-07 of 28 April 2005, as amended and supplemented, with special reference to sections 18 and 113; • Law No. 04-09 of 14 August 2004 on the promotion of renewable energies within the framework of sustainable development; • Law No. 04-20 of 25 December 2004 on major risk prevention and disaster management within the framework of sustainable development; • Law No. 03-10 of 19 July 2003 on environmental protection within the framework of sustainable development; • Law No. 01-19 of 12 December 2001 regulating waste management, control and elimination; • Law No. 99-09 of 28 July 1999 on energy control; • Law No. 88-07 of 26 January 1988 on workplace health and safety and on occupational medicine; • Law No. 83-13 of 2 July 1983 on workplace injuries and occupational diseases, as amended by ordnance No. 96-19 of 6 July 1996; • Presidential Decree No. 06-59 of 11 February 2006 ratifying Convention No. 155 regarding worker and workplace safety and health, adopted in Geneva on 22 June 1981; • Presidential Decree No. 06-206 of 7 June 2006 ratifying the Convention of Stockholm on Persistent Organic Pollutants, adopted in Stockholm on 22 May 2001; • Presidential Decree No. 05-119 of 11 April 2005 on the management of radioactive waste; • Presidential Decree No. 05-280 of 14 August 2005 ratifying Arab Convention n-7 concerning occupational hygiene and safety, adopted in Alexandria in March 1977; • Presidential Decree No. 04-326 of 10 October 2004 ratifying the International Convention of 1990 regarding preparations, response and cooperation against hydrocarbon pollution, signed in London on 30 November 1990; • Presidential Decree No. 99-64 of 15 March 1999 amending and supplementing certain provisions under Presidential Decree No. 90-198 of 30 June 1990 regulating explosive substances; • Executive Decree No. 08-312 of 5 October 2008 setting forth the terms and conditions for approval of environmental impact assessments for hydrocarbon-related activities; • Executive Decree No. 07-145 of 19 May 2007 establishing the area of application, contents and approval procedures of environmental impact assessments and information; • Executive Decree No. 07-144 of 19 May 2007 containing the specifications of classified installations for environmental protection purposes; • Executive Decree No. 07-297 of 27 September 2007 on the procedures to obtain authorization to build and operate hydrocarbon transport pipelines; • Executive Decree No. 07-299 of 27 September 2007 on the methods to apply the supplementary tax on industrial air pollution.

PG issued in October 2009

Ministry of Energy and Mines Hydrocarbon Regulatory Authority HSE Division

Hydrocarbon Installation and Facility HSE Control Procedures Phases: Engineering, Construction and Start-up

Reference: ARH_HSE_PR_AC_01 X1 Date of issue: 13 October 2009. Page 26 of 27

• Executive Decree No. 06-02 of 7 January 2006 defining the value ranges, alert thresholds, and air quality targets in case of air pollution; • Executive Decree No. 06-104 of 28 February 2006 containing waste specifications, including special hazardous waste; • Executive Decree No. 06-161 of 17 May 2006 declaring the Skikda industrial area a major risk area; • Executive Decree No. 06-162 of 17 May 2006 declaring the Arzew industrial area a major risk area; • Executive Decree No. 06-163 of 17 May 2006 declaring the In Amenas industrial hub a major risk area; • Executive Decree No. 06-198 of 31 May 2006 defining the provisions applicable to classified facilities for environmental protection purposes; • Executive Decree No. 05-08 of 8 January 2005 containing special prescriptions applicable to hazardous substances, products or processes in the workplace; • Executive Decree No. 05-09 of 8 January 2005 on joint commissions and individuals in charge of health and safety; • Executive Decree No. 05-10 of 8 January 2005 establishing the responsibilities, composition, organisation and operation of the Health and Safety Inter-company Committee; • Executive Decree No. 05-11 of 8 January 2005 establishing the conditions for the creation, organisation and operation of the Health and Safety Department, as well as its responsibilities; • Executive Decree No. 05-16 of 11 January 2005 setting forth specific energy efficiency rules applicable to equipment powered by electricity, gas, and oil products; • Executive Decree No. 05-127 of 24 April 2005 declaring Hassi Messaoud a major risk area; • Executive Decree No. 05-315 of 10 September 2005 establishing the methods to report special hazardous waste; • Executive Decree No. 05-476 of 20 December 2005 declaring Hassi-R. Mel a major risk area; • Executive Decree No. 05-477 of 20 December 2005 declaring the Berkine hub a major risk area; • Executive Decree No. 05-495 of 26 December 2005 on energy audits in high energy consumption facilities; • Executive Decree No. 05-08 of 8 January 2005 containing special prescriptions applicable to hazardous substances, products or processes in the workplace; • Executive Decree No. 04-409 of 14 December 2004 setting forth the methods for transporting special hazardous waste; • Executive Decree No. 03-451 of 1 December 2003 defining the safety rules applicable to activities involving hazardous chemical materials and products as well as pressurized gas containers; • Executive Decree No. 03-452 of 1 December 2003 setting forth special conditions for road transport of hazardous materials; • Executive Decree No. 02-372 of 11 November 2002 on packaging waste; • Executive Decree No. 97-424 of 11 November 1997 setting forth the conditions of application of Title V of Law No. 83-13 of 2 July 1983, as amended and supplemented, on the prevention of workplace injuries and occupational diseases; • Executive Decree No. 93-161 of 10 July 1993 regulating the discharge of oils and lubricants into the environment • Executive Decree No. 93-162 of 10 July 1993 setting forth the conditions and methods for the recovery and treatment of used oils; PG issued in October 2009

Ministry of Energy and Mines Hydrocarbon Regulatory Authority HSE Division

Hydrocarbon Installation and Facility HSE Control Procedures Phases: Engineering, Construction and Start-up

Reference: ARH_HSE_PR_AC_01 X1 Date of issue: 13 October 2009. Page 27 of 27

• Executive Decree No. 91-05 of 19 January 1991 on general protection prescriptions applicable to workplace health and safety; • Executive Decree No. 90-411 of 22 December 1990 on the applicable procedures and controls in connection with the construction and transfer of power and gas facilities; • Decree No. 88-35 of 16 February 1988 defining the types of pipelines and auxiliary facilities for the production and transport of hydrocarbons, as well as the procedures applicable to their construction; • Decree No. 85-105 of 12 may 1985 establishing a protection perimeter for installations and infrastructure facilities; • Decree No. 85-232 of 25 August 1985 on the prevention of disaster risks; • Decree No. 85-231 of 25 August 1985 setting forth the conditions and methods for the organisation and implementation of rescue operations in case of disaster; • Decree No. 84-105 of 12 May 1984 establishing a protection perimeter for installations and infrastructure facilities; • Decree No. 84-385 of 22 December 1984 setting forth the measures to protect installations, facilities and equipment; • Order of 16 October 2001 setting forth the standards relating to human resources, spaces and equipment for the provision of occupational medicine services; • Order of 16 October 2001 setting forth the methods for the application of the provisions under Section 30 of Executive Decree No. 93-120 of 15 Mai 1993 on the organisation of occupational medicine services; • Inter-ministerial Order of 9 June 1997 containing a list of occupations where workers are highly exposed to professional risks; • Inter-ministerial Order of 5 May 1996 containing a list of diseases thought to be of occupational origin; • Ministerial Order of 10 August 1993 containing a classification of potentially explosive materials; • Inter-ministerial Order of 12 December 1992 containing safety provisions for pipelines for the transport of liquid, pressure liquefied and gaseous hydrocarbons, and accessory facilities; • Order of 15 January 1986 establishing the limits of the protection perimeter around hydrocarbon installations and infrastructure facilities; • Inter-ministerial Order of 5 March 1984 containing model specifications for the administration of industrial areas; • Circular No. 330/ARH/2008 of 30 April 2008 containing prescriptions applicable to works executed in a hydrocarbon facility by an internal structure or an external company; • Circular No. 04 of 28 September 1994 on the setting up of the regulatory documents to be provided to the Government departments in charge of pipelines and auxiliary facilities; • Circular No. 2 of 21 July 1993 on the regulatory technical control of hydrocarbons processing and storage plants as well as electric power plants.

PG issued in October 2009