REGIONAL DIRECTOR FOR ENVIRONMENTAL PROTECTION IN SZCZECIN Szczecin, September 8, 2017 WONS-OŚ.4211.9.2015.AT.26 DECISION No. 30/2017 on environmental constraints

Pursuant to Article 104 of the Act of June 14, 1960, the Administrative Procedure Code (Journal of Laws of 2017, item 1257), Article 71 section 2 point 1, Article 75 section 7, Article 80, Article 82, Article 85 of the Act of October 3, 2008 on the provision of information on the environment and its protection, public participation in environmental protection and on environmental impact assessments (Journal of Laws of 2017, item 1405), as well as §2 section 1 point 1 (a), point 34 and § 3 section 1 points 32, 35÷ 37 of the Regulation of the Council of Ministers of November 9, 2010 on projects capable of significantly impacting the environment (Journal of Laws of 2016, item 71), after considering the application of Grupa Azoty Zakłady Chemiczne “Police” S.A. on the issue of a decision on environmental constraints for the project entitled: “Construction of a propylene production unit together with handling and storage terminal including technical infrastructure” planned in Police and after carrying out the proceedings on the assessment of environmental impact of the planned project,

I hereby decide to determine the environmental constraints for the project named: “Construction of a propylene production unit together with handling and storage terminal including technical infrastructure” and I simultaneously define: I. Type and location of the project implementation. The project is located in the commune of Police, in Zachodniopomorskie Province. The planned project includes the construction of a Propane DeHydrogenation (PDH) Unit along with a handling and storage terminal and technical infrastructure. The project consists of the following key components: 1. Onshore part (PDH Unit), 2. Offshore part (handling and storage terminal), 3. Piperacks with transmission pipelines connecting the onshore and offshore parts of the unit. The onshore part of the PDH unit will be located within the existing industrial plant of Grupa Azoty Zakłady Chemiczne “Police” S.A., while the offshore part at the Police Channel (West Oder) north of the existing Police Seaport. A piperack will be routed throughout the site of Zakłady Chemiczne “Police” S.A. and at a single spot it will cross a provincial road No. 114. As part of the project, preparatory works will be carried out on the clearance of trees and shrubs. The characteristics of the project are set out in Appendix No. 1 to this decision. II. Conditions of using the area at the stage of construction and operation or usage of the project, with particular focus on the necessity of protecting outstanding natural values, natural resources and monuments, as well as on reducing nuisance to neighboring areas. 1. In terms of groundwater environment: a) it shall be ensured that the area occupied for the construction site is limited to a bare minimum, b) prior to commencing with construction works, the top layer of the earth (topsoil layer) at the site of its occurrence shall be removed, stored in piles and reused for land reinstatement after construction works, c) soil from excavations shall be stored for reuse, and after the completion of works the area of the construction site and the strip occupied during the conduct of works should be put in order, d) the construction and machine depot as well as engineering back-up facilities, including social facilities should not be located near surface waters, e) the following proper conditions for the operation of the construction and machine depot should be ensured: − sealing (periodic, i.e. during construction) of the substrate in the parking places of construction vehicles and machinery; the area of the site back-up facilities, intended for the garaging of heavy mechanical equipment as well as the storage of oils and other hazardous substances that can contaminate the soil and groundwater, should be compacted and lined with concrete slabs, and reinstated after construction; it is reasonable to utilize the existing hardened surfaces, − equipping construction sites with chemicals (sorbents) to neutralize leakage from construction machinery, f) implement and operate the project in such a way as to protect the groundwater environment from the ingress of excessive pollutants, in particular petroleum derivatives, inter alia by: − avoiding contamination in the area of excavation, − carrying out excavations in the shortest possible time, − protecting excavations, where possible, from ingress of rainwater and run-off from the surface of the land, − providing good housekeeping on the construction site premises and its back-up facilities, − using operational construction equipment, which will reduce the likelihood of uncontrolled leakage of fuel and lubricants, − ensuring the proper operation and maintenance of equipment, construction machinery and means of transport, in order to prevent contamination of land and groundwater by leaks of oils or operating fluids, − necessary drainage to be carried out by methods that cannot lead to the formation of a cone of depression extending beyond the boundaries of the land to which the investor holds a legal title, − water drainage using wellpoints should be carried out under the supervision of a hydrogeologist, − drainage water should be directed directly or using a slurry tanker to the plant rainwater drainage system, − the installation of portable sanitary facilities and ensuring the export of wastewater from them by authorized operators, − in the case of spillage of petroleum derivatives from machinery and vehicles, they shall be removed from the construction site and appropriate measures shall be applied to prevent harmful substances from entering the ground; g) use environmentally friendly construction materials, commonly used in water and drainage

construction, which do not contaminate nor pose risk to the surrounding environment, including in particular water in direct and indirect manner. 2. In terms of ensuring proper waste management: a) no waste shall be left at the site of the works carried out, including in particular containers with hazardous substances, b) proper and compliant management of solid or liquid waste generated by the investment should be carried out in such a way as to avoid contamination of the groundwater environment, including marine environment with solid and liquid waste; c) works should be organized in such a way as to minimize the amount of waste generated; d) areas for the selective storage of waste outside sensitive areas, including areas of natural value, should be established at the construction site; these areas should be organized on impermeable ground, appropriately labeled taking into account the use and types of waste to be stored and protected against access by unauthorized persons; e) waste generated during the implementation of the project wherever possible should be utilized by own means within the construction site, if not, it should be stored selectively in a manner and in places adapted to it; waste storage sites should be provided on a hardened substrate; f) waste must be stored selectively in the containers and places intended for that purpose and it should be ensured that it is exported by entities holding the appropriate permissions to collect such waste; g) regular collection of the generated waste should be ensured, waste should be transferred only to entities complying with relevant waste management regulations. 3. Perform tests of bottom sludge before carrying out dredging works and quality status of extracted spoil, in order to determine the presence of hazardous substances in the spoil, in accordance with the Regulation of the Minister of the Environment of June 12, 2015 on recovery or disposal of waste outside systems or devices (Journal of Laws of 2015, item 796). 4. Dredging spoil contaminated with hazardous substances as waste with code 170505* shall be managed in accordance with the regulations, e.g. handed over to an operator authorized to manage such waste in terms of recovery or disposal. 5. Excavated material not containing hazardous components and complying with the requirements of the above mentioned Regulation shall be stockpiled or processed on plots intended for this purpose in accordance with the decision of the Police Staroste dated January 18, 2016, ref. SR.6230.1.2016.SD, as amended by the Decision of May 31, 2017. 6. Dredging works should be carried out using modern mining equipment and technologies in order to prevent the occurrence of an excessive decrease in water transparency. 7. With regard to the construction of the dolphin harbor and the berth, works should be carried out from the shore and only in necessary and justified cases from the riverbed. 8. Extraction works related to the implementation of the terminal should be limited to the bare minimum and carried out at a distance from the shore, with a resuspension of the sludge to a minimum through the use of suction devices mounted on floating equipment. 9. Storage and thickening of the extracted sediment in such a way as to prevent the drainage of water with suspended matter into surface waters. 10. The following conditions shall be taken into account for works carried out in the area of internal marine waters: a) the adopted work methodology should help to exclude the ingress of (solid and liquid) pollutants into the groundwater environment; b) it shall be ensured that the works are performed in a manner that avoids contamination

of the marine environment by solid and liquid waste and that any pollutants generated in the course of works carried out are removed immediately and continuously from the water surface; c) in the case of spillage of petroleum products and petroleum derivatives from machinery or vehicles, appropriate measures must be applied to protect the ingress of harmful substances into water and into the ground, d) whereas, in the case of leakage of petroleum derivatives, mechanical collection from the surface of the water and sorbents should be utilized; whereas the use of non- mechanical means to remove petroleum derivatives from the water surface is possible only after obtaining approval of the Director of the Maritime Office in Szczecin each time; e) obligation is assumed on the investor to notify the Director of the Maritime Office in Szczecin via the Port Master of Szczecin or VTS (Vessel Traffic Services) each time about events related to pollution or threat of internal marine water pollution; f) obligation is assumed on the investor to determine how to deal with port water pollution (petroleum hydrocarbons, chemicals, garbage, etc.) and, in particular, to develop a plan to combat risks and pollution for port waters in the Police port; g) implementation of the project shall meet the requirements of the environmental protection of marine waters in the context of the requirements resulting from the Water Framework Directive (WFD); h) in the course of works carried out, it is necessary to pay attention and care in possible spots of anchored navigational signage (buoys) and fixed (beacons); i) during the performance of the dredging works, continuous supervision over the machinery and their continuous inspections regarding operability will be carried out in order to avoid uncontrolled leakage of fuels and lubricants into the water; j) before commencing with the implementation of the investment, obtain the consent of the Director of the Maritime Office in Szczecin to occupy the reservoir for the duration of the works. 11. In order to minimize emissions of dust and gaseous pollutants into the air and reduce noise emissions to the environment: a) construction works characterized by high levels of noise should be carried out in the vicinity of acoustically protected areas only during daytime, i.e. between 6.00 a.m. and 10.00 p.m., excluding works which must be carried out in continuous manner (such as operation of drainage pumps); b) site back-up facilities should be located as far as possible from acoustically protected areas (buildings serving as residential development area); c) aim at minimizing the travels of heavy vehicles and machinery in the vicinity of residential buildings; d) the works must be carried out in the shortest possible time; e) at the stage of the project implementation use fully operational machinery and vehicles; inspect the technical condition of machinery and equipment used in the implementation of the project on an ongoing basis; malfunctioning devices that can generate increased noise levels in their surroundings must be eliminated from the works; f) use construction machinery and devices with low noise emissions; g) the engines of motor vehicles and working machines shall be switched off during breaks in work; h) reduce the operating time of internal combustion engines, construction machinery and idling cars to a minimum; i) minimize the operating time of engines at the highest rotational speed, do not overload machines and vehicles; j) where technically feasible, use the least acoustically cumbersome technology of site preparation and construction works; k) ensure that water transport in favor of road transport is used in the implementation of the offshore part of the investment;

l) limit the speed of vehicles in the construction area; m) dusting bulk materials shall be protected against scattering both during storage and loading onto cars and during transportation; n) ensure housekeeping of the construction site by limiting dust migration (e.g. use of suction sweeping machines on hardened areas); o) earthworks, including excavations, should be carried out in such a way as to minimize unorganized emissions, including under high temperatures and dry windy weather, periodic wetting of the ground's surface is recommended, as well as maximum reduction of the time the cuts are left uncovered and places of stockpiling the collected soil; p) in the event of adverse weather conditions (e.g. strong winds in the absence of rainfall) - covering heaps of bulk materials with tarpaulins and/or sprinkling them with water; q) utilize (where possible) the ready-made concrete mixes produced by external plants to limit the use of cement and other materials in bulk form; r) perform wet cutting of concrete elements, s) works related to demolition of facilities shall be carried out in such a way as to minimize unorganized emissions. 12. In the field of nature conservation, in order to minimize the impact of investment on the natural environment and use of land during the phases of implementation and operation, it is necessary to ensure the following: a) during construction works the transformation and use of natural elements should be carried out only to the extent necessary in connection with the implementation of the investment, so the land and vegetation outside the area designated for the conduct of works should not be spoiled, b) due to the location of the project within special protection area of birds Natura 2000 Szczecin Lagoon PLB320009, in order to protect populations of wild bird species, to maintain and manage their natural habitats in accordance with ecological requirements, to restore the destroyed biotopes and to create new biotopes, it is necessary to use technologies with the least acoustic nuisance, while noisy construction works should be carried out only during daytime. The noise emissions during the works shall be minimized using devices and machinery that meet Polish standards. Equipment with appropriate soundproofing, technical efficiency and low emissions of pollutants into the air, as well as using the least acoustically burdensome technologies must be applied for carrying out the construction works, c) clearance of trees and shrubs should be carried out outside the bird breeding period, d) possible plantings of tree and shrub species should be carried out in an area where it is possible in terms of habitat (appropriate selection of plant species) and flood protection; e) works carried out in the river bed, including dredging and refulation, so as not to interfere with the periods of spawning and migration of fish; these works should be carried out under the supervision of an ichthyologist; f) the project should be carried out outside the breeding season of birds, i.e. from the end of August to March, and in case of necessity to continue these works within the indicated period, the works should be carried out under environmental supervision (of ornithologist); for the destruction of habitats and reproduction sites of protected species decisions should be obtained for derogations from Article 52 of the Nature Conservation Act from the Regional Director for Environmental Protection in Szczecin; g) in order to protect amphibians it is necessary to: − level the shoreline of the Oder River outside the breeding season of green frogs (works to be carried out from the end of June to the beginning of April), − in order to avoid the destruction of periodic ponds occupied by amphibians, leveling of the investment site should be carried out between August and March, − should it be necessary to continue these works outside the indicated period, these should be carried out under the environmental supervision (of herpetologist), and

for the destruction of habitats and breeding sites among others, of common newt and common toad, decisions should be obtained for derogations from Article 52 of the Nature Conservation Act from the Regional Director for Environmental Protection in Szczecin, − the construction site and excavations must be inspected and, if animals are found, workers should notify environmental supervision and allow the animals to escape without stress; h) decisions should be obtained for derogations from the prohibitions in respect of protected species of plants (e.g. Dwarf everlast), 13. notify residents of works carried out that may cause communication difficulties or cause increased emissions of noise. III. Environmental protection requirements necessary to include in the documentation required for granting of decisions referred to in Article 72 section 1 points 1-13 of the Act of October 3, 2008 on the provision of information on the environment and its protection, public participation in environmental protection and on environmental impact assessment (Journal of Laws of 2017, item 1405). 1. Description of the works carried out shall take into account the conditions set out in point II of this decision, including the location of the construction and machine depot, the technical site back-up facilities and in particular the areas for storage of materials and waste. 2. In order to reduce environmental noise emissions to the required level, acoustic protection such as silencers and sound-absorbing and insulating enclosures shall be provided for the equipment to be installed within the designed unit. 3. Moreover, in order to comply with the permissible noise levels in the environment, a program to muffle the dominant noise sources of the existing units should be implemented before the commissioning of the designed units as per recommendations of the report. 4. In order to comply with the permissible levels of emissions of pollutants into the air, it is necessary to: a) keep the parameters of the emitters at the level specified in the report or not inferior to them, b) ensure the leaktightness of the units, c) ensure the combustion of excess gases in the torch, including from the ventilation of tanks and units and in emergency situations, d) neutralize and discharge the quantities of sulfur compounds present in the process, including the wastewater, e) provide vapor treatment systems when loading and unloading the volatile substances onto (or from) vessels. 5. Design leaktight oil-drip pans with a capacity allowing for emergency storage of 100% of oil from transformers and 20% reserve for rainwater. 6. The ongoing drainage of rainwater from the transformer stations should be carried out using a typical oil/water separation system, equipped with an emergency state signaling system. 7. Design the collection and directing of industrial and process wastewater through planned industrial sewerage to a planned industrial treatment plant for treating wastewater from propylene production units and auxiliary units. 8. Design the drainage of water from the cooling water circuit through the existing post- cooling and rainfall water drainage into the Barkowy Channel and then into the Oder River.

9. Sanitary water generated in the sanitary facilities of the unit should be collected into non- drainage tanks, from where it should be pumped into the existing sanitary water sewage system. 10. Rainwater and melt waters from surfaces where contamination may occur (e.g. filling stations, storage tanks fields, roads and yards, reservoir backfill surfaces) are discharged to the rainwater drainage system connected to the plant's rainwater drainage system. Before discharge to the receiver (Bystrotok Channel and further Oder River in the terminal location) this wastewater is cleaned using a separator and a sandbox. IV. I recognize the need to prevent, reduce and monitor the environmental impact of the project in the following scope: 1. The project shall be carried out under environmental supervision verifying the possibility of selection of protected species of plants and animals as well as habitats at the sites covered by the project. 2. Ongoing supervision of a specialist company dealing with the elimination and neutralization of pollutants from water should be ensured. 3. During the construction phase, records of consumed raw materials, fuels and waste generated should be kept, the correct operating condition of construction equipment and transport vehicles should be controlled, as well as quantitative and qualitative records of waste, in accordance with the accepted classification of waste, should be kept. 4. During the period of the investment implementation, the monitoring of the intensity, altitude and migration routes of birds passing through the investment area, taking into account accidents/collisions of birds with tall construction equipment used (pile-drivers, cranes) should be carried out, and in case of bird mortality the actions minimizing the incidents especially in the autumn and winter period should be taken (due to fog and the large number of birds flying). Monitoring is to be conducted by an ornithologist. The results of the monitoring shall be communicated to the Regional Director for Environmental Protection in Szczecin in the form of an annual report with an indication of the measures aimed at minimization applied along with an assessment of their effectiveness. V. Obligation to perform a reassessment of the environmental impact. As part of the procedure for issuing a building permit, obligation to perform a reassessment of the environmental impact is not imposed (Article 72 section 1 of the Act of October 3, 2008 on the provision of information on the environment and its protection, public participation in environmental protection and on environmental impact assessments (Journal of Laws of 2017, item 1405). Grounds On October 30, 2015, Grupa Azoty Zakłady Chemiczne “Police” S.A. applied for issuance of a decision on environmental constraints for the project titled: “Construction of a propylene production unit together with the handling and storage terminal including technical infrastructure” planned in Police, at the same time, applying for establishment of the scope of the report, pursuant to the provisions of Article 69 of the Act of October 3, 2008 on the provision of information on the environment and its protection, public participation in environmental protection and on environmental impact assessments (Journal of Laws of 2017, item 1405) – hereinafter referred to as the EIA Act. The submitted documents made it possible to establish that the project will be implemented in part in the maritime areas referred to in Article 4 section 1 of the Act of March 21, 1991 on maritime areas of the Republic of Poland and maritime administration (Journal of Laws of 2016, item 2145, as amended). Therefore, the Regional Director for Environmental Protection in Szczecin is the authority competent to issue a decision on environmental constraints, in accordance with Article 75 section 7 of the EIA Act.

Since the application submitted on October 30, 2015 did not meet the formal and legal requirements, the Regional Director for Environmental Protection repeatedly requested the applicant by letters dated: November 9, 2015, November 19, 2015 and December 7, 2015 to: − indicate the final title of the project for which the decision on environmental constraints was applied, since the applicant's letters and documents mentioned projects treated as two separate ones: the construction of a terminal for propane handling and storage and the construction of a dolphin harbor for propane handling; − submit the missing documents, including: a unified project information sheet covering the entire investment task, taking into account that projects having technological ties should be understood as a single project, also in cases they are carried out by different entities; as provided for in Article 3 point 13 of the EIA Act. Appropriate supplements were received successively on the following days: November 16, 2015, November 30, 2015, December 16, 2015, January 12, 2016, January 19, 2016 and January 25, 2016. Therefore, the application for a decision on environmental constrains was submitted with necessary appendices, including documents resulting from Article 74 of the EIA Act: − information sheet of the project titled: “Construction of a propylene production unit together with the handling and storage terminal including technical infrastructure” planned in Police; − copies of cadastral maps certified by competent authorities, covering the planned area where the project will be implemented, and covering the area to be impacted by the project; − a graphic appendix showing clearly the scope of the project, covering the entire investment task included in the application for a decision on environmental constraints; − excerpts from the land register, including the planned area where the project will be implemented, and covering the area to be impacted by the project; − letter from the Maritime Office in Szczecin dated November 12, 2015, ref.: GPG-l- 61100- 1/2/2015, on the lack of a local spatial development plan for the part of the project site; − power of attorney No. 50/2011 dated October 24, 2011 for Mr. Krzysztof Klein together with confirmation of its validity – letter by Grupa Azoty Zakłady Chemiczne Police S.A. dated November 25, 2015, ref.: GT/2614/2015. − map excerpts and extracts of the local spatial development plans: • letter pp. Mayor of Police dated November 18, 2015, ref.: UA.6727.332.2015.HH; • letter pp. Mayor of Police dated December 29, 2015, ref.: UA.6727.386.2015.HH; • letter pp. Mayor of Police dated January 20, 2016, ref.: UA.727.16.2016.EL. From the examination of the case it follows that the project complies with the provisions of the local spatial development plan of the Police commune. After completing the application in terms of conformity with the legal and formal requirements, circumstances occurred allowing for its revision in terms of substantive contents, provided that the deadline for application submission should be counted from the date of submission of a letter supplementing deficiencies (judgment of the Provincial Administrative Court II SAB/GI 51/08 of August 26, 2009), i.e. from January 25, 2016. Pursuant to Article 71 of the EIA Act, obtaining a decision on environmental constraints is required for the planned projects that may always have a significant impact on the environment and projects that might potentially have a significant impact on the environment. The characteristics of the project show that the investment project falls within the group of the projects that may always have a significant impact on the environment, which results from the following qualification: − a propylene production unit using the PDH method – § 2 section 1 point 1 letter a. –

i.e. units for production of substances using chemical processes, designed for the manufacture of basic products or semi-finished products of organic chemistry; − sea (dolphin) harbor with propylene loading and propane unloading equipment – § 2 section 1 point 34 – i.e. sea ports or harbors within the meaning of the Act of December 20, 1996 on sea ports and harbors (Journal of Laws of 2010, No. 33, item 179), including port infrastructure used for loading and unloading, connected to the mainland or situated offshore, for handling vessels with a load capacity exceeding 1,350 t, within the meaning of the Act of September 18, 2001 – Maritime Code (Journal of Laws of 2009, No. 217, item 1689 and of 2010, No. 127, item 857) and the Act of December 21, 2000 on inland navigation, excluding ferry harbors. The project site shall also cover units which should be qualified for projects that may potentially have a significant impact on the environment: − systems for product (propylene) distribution to rail and road tankers – § 3 section 1 point 35, i.e. units for distribution of crude oil, petroleum products, substances or mixtures, within the meaning of the provisions of the Act of February 25, 2011 on chemical substances and mixtures thereof, which are not food products, excluding liquefied gas filling stations; − propylene storage tanks – § 3 section 1 point 36 – i.e. units for underground storage of crude oil, petroleum products, substances or mixtures, within the meaning of the Act of February 25, 2011 on chemical substances and mixtures thereof, which are not food products, flammable gases and other fossil fuels, other than those listed in point 36a and § 2 section 1 point 22, excluding systems for storing fuels used for household needs, liquefied gas tanks with a total volume not exceeding 20 m3 and oil tanks with a total volume not exceeding 3 m3; − propane storage tanks – § 3 section 1 point 37 – i.e. units for above-ground storage of crude oil, petroleum products, substances or mixtures, within the meaning of the Act of February 25, 2011 on chemical substances and mixtures thereof, which are not food products, flammable gases and other fossil fuels, other than those listed in § 2 section 1 point 22, excluding units for storing fuels used for household needs, liquefied gas tanks with a total volume not exceeding 10 m3 and oil tanks with a total volume not exceeding 3 m3, as well as units for storage of solid energy raw materials not related to distribution; − an above-ground system of pumping propane from the terminal to the production unit and propylene from the production unit to the terminal – § 3 section 1. point 32 – i.e. units for transferring crude oil, petroleum products, substances or mixtures, within the meaning of the Act of February 25, 2011 on chemical substances and mixtures thereof, which are not food products, flammable gases and other fossil fuels, other than those listed in point 36a and § 2 section 1 point 22, excluding units for storing fuels used for household needs, liquefied gas tanks with a total volume not exceeding 20 m3 and oil tanks with a total volume not exceeding 3 m3. Given that projects having technological ties qualify as a single project, the required environmental impact assessment is mandatory for the planned investment project as a whole. At the same time, it is required for such an investment project to obtain a decision on environmental constraints, as provided for in Article 71 of the EIA Act. When applying for a decision on environmental constraints for the aforementioned project, which may always have a significant impact on the environment instead of an environmental impact report, the applicant submitted an information sheet of the project together with an application for establishment of the scope of the report, in accordance with Article 69 section 1 of the EIA Act. Therefore, pursuant to Article 70 section 1 point 2 and section 1a of the Act, an opinion was requested on the establishment of the scope of the environmental impact report for the project to the following authorities: the State District Sanitary Inspector in Police and the State Border Sanitary Inspector in Szczecin (letter dated February 1, 2015, ref.: WONS- OŚ.4211.9.2015.AT.6) and to the Director of the Maritime Office in Szczecin (letter dated

February 1, 2016, ref.: WONS-OŚ.4211.9.2015.AT.7). The Regional Director for Environmental Protection in Szczecin, after analyzing the submitted documents and taking into account the opinions of the aforementioned authorities, issued a decision dated February 29, 2016, ref.: WONS-OŚ.4211.9.2015.AT.KK.10, in which it specified for the applied project the scope of the environmental impact report and suspended the procedure until submission of the environmental impact report (decision dated February 29, 2016, ref.: WONS-OŚ.4211.9.2015.AT.KK.11), in accordance with Article 69 section 4 of the EIA Act. Due to the fact that on January 31, 2017, the applicant submitted a study entitled “Environmental impact report for the project titled: Construction of a propylene production unit together with the handling and storage terminal including infrastructure” developed by the team of Multiconsult Polska Sp. z o. o. – hereinafter referred to as the report, in order to continue the procedure, by decision of February 9, 2017, ref.: WONS-OŚ.4211.9.2015.AT.11, the Regional Director for Environmental Protection in Szczecin undertook the suspended procedure, in accordance with the provisions of Article 97 § 2 of the Act of June 14,1960, the Code of Administrative Procedure (Journal of Laws of 2017, item 1257) – hereinafter referred to as the Code of Administrative Procedure. In connection with the provisions in the report concerning Volume II and III of the report which reads as follows – “Document not disclosed to the public due to the protection of trade secrets and the licensor’s secrets and in view of the provisions of Article 3 point 2a, Article 4 section 1 point 5 and Article 6 section 1 points 1 and 3 of the Act of April 26, 2007 on crisis management (consolidated text: Journal of Laws of 2013, item 1166, as amended)”, the applicant was notified that the exclusion of specified documents from the disclosure procedure is possible after examination by the authority of the application in this matter, in accordance with the requirements of Article 16 section 3 of the EIA Act, taking into account Article 16 section 1 point 7 of this Act (letter dated February 13, 2017, ref.: WONS-OŚ... 4211.9.2015.AT. 12). By letter No. RR 4474/006/2016/AP, dated February 14, 2017 (date of receipt – February 16, 2017), the investor's representative submitted an application for excluding information from disclosure, and on March 13, 2017 (date of receipt – March 16, 2017) by letter No. RR4474/007/2016/AP) the investor’s representative submitted correction to the previous application. Since the EIA Act does not provide for the form of acceptance of the application submitted pursuant to Article 16 section 1 point 7 of the Act on exclusion of information from disclosure, the authority informed the parties to the procedure, the authorities involved in the procedure and the public that in view of the protection of trade secrets and in view of the provisions of Article 3 point 2 letter k) of the Act on crisis management, the following documents are excluded from the information disclosure procedure: • VOLUME II of the environmental impact report – Description of the technology of the onshore part of the investment project • VOLUME III of the environmental impact report – Description of the technology of the offshore part of the investment project. In accordance with the EIA Act, the authority carried out an environmental impact assessment procedure for the planned project, including in particular: − ensuring the possibility of public participation in the procedure; − obtaining opinions and approvals required by the Act; − verification of the environmental impact report. As part of ensuring the possibility of participation of the public, by the notice dated May 21, 2017, ref.: WONS- OŚ.4211.9.2015.AT.14, the Regional Director for Environmental Protection in Szczecin made public information about the ongoing procedure concerning the assessment of the environmental impact of the project in question. The notice provides all the information referred to in Article 33 section 1 of the aforementioned Act, including the possibility of

submitting comments and applications, indicating the place and a 30-day deadline for submission thereof (from March 31, 2017 to May 2, 2017, inclusive). In view of the presented supplements to the report, by the notice dated June 12, 2017, ref.: WONS- OŚ.4211.9.2015.AT.22, information about the ongoing procedure concerning the environmental impact assessment of the project in question and the possibility of submission of comments and application for the period of 30 days (the period covered the days from June 14, 2017 to July 14, 2017, inclusive) was made public. The public was notified by making information available on the notice board and on the website of the Public Information Bulletin of the Regional Directorate for Environmental Protection in Szczecin and the notice board of the Municipal Office in Police. No comments from the public were received in the case in question. The number of parties to the procedure does not exceed 20 persons, which was determined on the basis of an analysis of the excerpts from the land register and a map with the location of the investment project and the impact thereof. In view of the above, the parties to the procedure were individually notified of the initiation of the procedure and of all the activities of the authority conducting the procedure. The parties were informed about their rights, resulting from Article 10 of the aforementioned Act, indicating that persons who are entitled to the status of a party (Article 28 of the Code of Administrative Procedure), have the opportunity to: actively participate in each stage of the procedure, get acquainted with the documentation submitted in the present case, present opinion on the collected material and evidence and make comments and conclusions. In the course of the procedure, Mr. Adam Malczewski, a representative of the BIOS Ecological Association from Brzozówka applied for the status of a party, which was granted by a decision of February 10, 2016, ref.: WONS- OŚ.4211.9.2015.AT.8, pursuant to the provisions of Article 31 § 1 of the Code of Administrative Procedure. Prior to the issuance of this Decision, the parties to the procedure were informed about the possibility of familiarization with the contents of the documents collected and of the opportunity to present opinion on the evidence and material collected prior to the issuance of the decision on environmental constraints. Until the date of issuance of this decision, the parties have not raised any comments or objections in the present case. In the course of the procedure, after the analysis of the environmental impact report, the local authority requested the applicant to complete the environmental impact report. The relevant supplement was received on June 8, 2017 and was forwarded to the authorities involved in the procedure; the parties to the procedure and the public were also notified. Pursuant to Article 77 section 1 point 1 and 2 of the EIA Act, the opinion of the State District Sanitary Inspector in Police and the Border State Sanitary Inspector in Szczecin was requested during the procedure, and in accordance with Article 77 section 1 point 1 of this Act, a request for approval was submitted to the Director of the Maritime Office in Szczecin. By decision of May 24, 2017, ref.: OW-IV- 071/018/04/17, the Director of the Maritime Office in Szczecin agreed on the implementation of the project in relation to the maritime area setting out the following conditions for project implementation: 1. Implementation of the project should exclude the ingress of pollutants into the marine environment. It shall be ensured that the works are performed in a manner that avoids contamination of the marine environment by solid and liquid waste and that any pollutants arising from the works carried out are removed immediately and continuously from the water surface. Construction works methodology should not allow water contamination with solid and liquid waste. 2. In the case of spillage of petroleum products and petroleum derivatives from machinery or vehicles, appropriate measures must be applied to protect the ingress of harmful substances into water and into the ground. In the event of leakage of petroleum derivatives, mechanical collection from the surface of the water and sorbents shall be used. The use of non-mechanical means for removing petroleum derivatives from the surface is possible only after getting approval of the Director of the Maritime Office in

Szczecin each time. 3. Obligation is assumed on the investor to notify the Director of the Maritime Office in Szczecin via the Port Master of Szczecin or VTS (Vessel Traffic Services) each time of events related to pollution or threat of internal marine water pollution. 4. Obligation is assumed on the investor to determine how to deal with port water pollution (petroleum hydrocarbons, chemicals, garbage, etc.) and, in particular, to develop a plan of combating risks and pollution for port waters at the Police port. In the case of spillage of petroleum products and petroleum derivatives from machinery or vehicles, appropriate measures must be applied to protect the ingress of harmful substances into water and into the ground. 5. Construction site back-up facilities, places of waste and materials collection shall be organized and maintained ensuring the economical use of the site and minimum transformation of its area, and upon completion of the works, the site shall be restored to its original condition. Proper waste management shall be carried out, and: a) works should be organized in such a way as to minimize the amount of waste generated; b) the generated waste shall be stored selectively in places adapted thereto, in a manner that is least hazardous to the environment, and then, managed in accordance with the regulations; c) sanitary water from construction sites should be discharged to non-drainage tanks, and then handed over to an authorized waste collection company. 6. When carrying out works, any transformation and use of natural components is allowed only to the extent required in connection with execution of the investment project. 7. The execution of the project shall meet the requirements of the environmental protection of marine waters in the context of the requirements resulting from the Water Framework Directive (WFD). 8. In the course of works carried out, it is necessary to pay attention and care in possible spots of anchored (buoys) and fixed (beacons) navigation aids. 9. Before commencing with the implementation of the investment project, the consent of the Director of the Maritime Office in Szczecin to shall be obtained to occupy the reservoir for the duration of the works. 10. The building permit design needs to specify a manner of handling spoil generated during the performed works, taking into account its maximum management. In case spoil is deposited in the maritime area, the consent of the director of the maritime office with jurisdiction over the deposition site shall be obtained. 11. Due to the location of the project within special protection area of birds Natura 2000 Szczecin Lagoon PLB320009, in order to protect populations of wild bird species, to maintain and manage their natural habitats in accordance with ecological requirements, to restore the destroyed biotopes and to create new biotopes, it is necessary to use technologies with the least acoustic nuisance, while noisy construction works should be carried out only during daytime. The noise emissions during the works shall be minimized using devices and machinery that meet Polish standards. Equipment with appropriate soundproofing, technical efficiency and low emissions of pollutants into the air, as well as using the least acoustically burdensome technologies must be applied for carrying out the works. Furthermore, in its decision, the Director of the Maritime Office in Szczecin provided additional information and comments to the report, which were taken into account in the request of the Regional Director for Environmental Protection in Szczecin of May 12, 2017. Once the supplements to the environmental impact report have been obtained, by decision of June 29, 2017, ref.: OW-IV-071/018/08/17, the Director of the Maritime Office sustained its previous comments and pointed to the need for an investor to set a specific deadline for developing a plan of combating risks and pollution for port waters at the Police Seaport. By letter dated April 21, 2017, ref.: ONS.ZNS.403.9.2017, the State Border Sanitary Inspector in Szczecin gave a positive opinion on the implementation of the project without specifying conditions therefor, and maintained this opinion by letter dated July 6, 2017, ref.:

ONS.ZNS.403.9- 1.2017, after obtaining supplementary materials. By letter dated April 12, 2017, ref.: PS.ZNS.4013- 2/17, the District Sanitary Inspector in Police gave a positive opinion on the implementation of the project, specifying the following conditions: 1. Operable construction equipment shall be used. 2. Malfunctioning equipment that may generate increased noise levels in their surroundings should be taken out of operation. 3. It is required to ensure proper operation and maintenance of equipment, construction plant and means of transport, in order to prevent contamination of land and groundwater by leaks of oils or operating fluids. 4. The engines of motor vehicles and working machines shall be switched off during breaks in work. 5. No waste shall be left at the site of the works carried out, including in particular containers with hazardous substances. 6. The waste must be stored selectively in the containers and places intended for that purpose and to ensure that it is exported by entities holding the appropriate permissions to collect such waste. 7. Waste storage sites should be provided on a hardened substrate. 8. Dusting materials must be protected against scattering. 9. During demolition works on the flyover and road, it is necessary to protect the area under the flyover against falling fragments of removed materials. 10. It is required to conduct dialog and consultations with the interested parties on the project in question. Upon obtaining supplementary materials by letter dated June 21, 2017, ref.: PS.ZNS.4013- 2/17, the District Sanitary Inspector in Police gave a positive opinion on the project, without additional conditions. The comments and conditions laid down by the authorities involved in the procedure for issuing a decision on environmental constraints have been taken into account in the procedure and in the adjudicating part of this decision. In the course of this procedure, Article 6 of the EIA Act shall apply, pursuant to which the requirement for approval or providing opinion does not apply if the authority in charge of the procedure is also the approving authority or authority providing the opinion. The Regional Director for Environmental Protection in Szczecin, after analyzing the submitted documentation and taking into account the above-mentioned opinions and agreement, established the environmental constrains for the project in question n this environmental decision. The submitted environmental impact report includes an analysis of the impact of the planned investment project on: surface waters and groundwaters, soil, air, acoustic impact, waste management, water and sewage management and natural environment. The project is located in the commune of Police, Zachodniopomorskie Province, almost entirely within the borders of the city of Police, except for a fragment of the accompanying infrastructure (main substation line), which is planned within the borders of the village of Tatynia. The planned Project includes the construction of a propylene production unit using the PDH (Propane DeHydrogenation) method together with a handling and storage terminal including technical infrastructure. The project consists of the following key components: 1. Onshore part (PDH Unit), 2. Offshore part (handling and storage terminal), 3. Pipe racks with transmission pipelines connecting the onshore and offshore parts of the unit.

The onshore part of the PDH Unit will be located within the existing industrial plant of Grupa Azoty Zakłady Chemiczne “Police” S.A., while the offshore part at the Police Channel (West Oder) north of the existing Police Seaport. The pipe rack will be routed on the premises of the chemical plants and at a single spot it will cross the provincial road No. 114. The project is planned on the premises of a plant producing compound mineral fertilizers and nitrate fertilizer (urea), titanium white pigments and sulphuric acid and iron sulphate II (by- product or waste - depending on the handling procedure). The handling and storage terminal shall be implemented in the post-silting areas. Propylene production technology is the process of catalytic dehydrogenation of propane into propylene. As a result of this process, hydrogen is also formed. The stages of the technological process include, i.a.: purification and drying of a raw material (propane is purified and dried), separation of propane, separation (e.g. evaporation of propane), selective dehydrogenation of propane inthe reactors, cooling, purification and compression of post-reaction gases, another phase of separation (e.g. obtaining a condensate composed mainly of propane and propylene), hydrogen purification, extraction of ethane and low-boiling substances, separation of propylene and propane, selective dehydrogenation of contaminated, unreacted propane, methanol removal from propane to the admissible values. The used catalyst contaminated in the process undergoes continuous regeneration. The production unit also includes auxiliary units, such as: − cooling water, steam and condensate, air and nitrogen units, wastewater and its treatment, demineralized water, potable water and fuel gas system as well as systems for fire and auxiliary use, heating and ventilation; − chemical, propane and propylene storage with expedition; − export of propylene; − import of propane; − flare with a piperack, − telecommunication and fire protection systems. The handling and storage terminal of propane and propylene, along with the associated unit is intended for handling and storage of liquefied gases: propane received from ships and propylene sent to ships. As part of this task, it is planned to construct a storage part (propane unloaded from ships is planned to be stored in mounded bullets or in cryogenic double wall unpressurized tanks) and construct a propane and propylene handling station on the bank of Police Channel, along with dredging of the basin and change of location of the navigation aids (navigation buoys). The expected performance of the terminal is as follows: − propane supply – up to 526,000 Mg/year, − the amount of produced propylene and hydrogen – approx. 400,000 Mg/year and approx. 161,000, respectively, − capacity of the vessel unloading process to the onshore tanks: minimum 2,000 m3/h. The terminal is connected to the production unit by two pipelines of approx. 4.5 km. One of them is used to supply propane to the production unit, which is the main raw material. The second one supplies the terminal with a product – liquified propylene. The project shall be performed in stages: stage I: construction of propane and propylene terminal with dredging of the basin to a depth of 10.5 m, stage II: dredging of the basin to a depth of 12.5 m, expansion of the tank farm. During stage II, the expansion of the tank farm may be carried out independently of the task consisting in dredging of the basin to a depth of 12.5 m, although these tasks are related. The description of the technology of the onshore and offshore part of the investment project due to the protection of trade secrets and in view of the provisions of Article 3 point 2 letter k)

of the Act on crisis management shall be exempted from the disclosure procedure. Propylene produced in the PDH Unit shall be delivered to many customers producing, among others, propylene oxide, polypropylene and copolymers, Oxo alcohols, acrylonitrile and a number of other semi-finished products of the chemical sector. The hydrogen produced as a by-product is intended to enable new types of production on the basis of this raw material in the future. Preparing variants of the project. The report presents an analysis of the preparation of the variants of the project. The variant of not making investment projects was considered, which would be related to leaving the site in the current state as well as two variants of the project: variant 1 (FEED1) - according to the concept of Technimont and variant 2 (FEED 2) - according to the concept of Technip. The analysis provided in the report, including the results of the multicriterial analysis, shows that the environmental impact of both variants is comparable both at the construction and operation stages. However, given the slightly lower impact of variant 2, including lower risk for emergency situations than for variant 1, i.e. the variant applied for, that is variant 2, was indicated as the most favorable with regard to the environment. Groundwater constraints. Surface water bodies and groundwater bodies The subbase for the soils within the planned construction site are the Quaternary formations of the Pleistocene (Holocene clays), anthropogenic soils (rubble and mineral embankments), peats, alluvial silts and alluvial sands. The entire planned handling terminal is located on compressible subsoil with a thickness of up to 15 m. Construction of facilities will require procedures to strengthen the bearing capacity of the ground. The investment project in question is located in the Lower Oder and West Pomerania Water Region. Hydrographic system relates to the Gunica River, which flows through Zakłady Chemiczne “Police” S.A. in its middle section and is a tributary of the Oder River. In the area of the planned investment project, the groundwater table stabilizes close to the ground surface, and there are also waterlogged areas. There is a hydraulic bond between the Oder River and the groundwater in this area. According to the current Water Management Plan in the Oder River basin area, the location of this investment project was classified as part of the river basin of the following water bodies: − Surface water bodies (JCWP) called Police Channel - code RW6000019954 and named Gunica from the Wołczkowski Trench to the mouth - code RW600019199899, − Groundwater bodies (JCWPd) bearing numbers 7 and 3. The Police Channel is a surface water body formed as a result of human activity and is an artificial body of water. The general assessment of the condition of these waters - good, is not threatened by non-achievement of environmental objectives. Groundwater body Gunica from the Wołczkowski Trench to the mouth was assigned the status of a heavily altered body of water, and the assessment of risk of non-achievement of environmental objectives gave the result of threatened. In the Oder River Basin Management Plan the deadline for achieving the environmental objective was extended due to lack of technical capabilities. The justification for the derogation is the occurrence of municipal pressure in the river basin area of this surface water body (highly urbanized area, observed exceeding of the river absorbency due to discharges from the wastewater treatment plants. On the other hand, the quantitative and chemical state of both groundwater bodies was evaluated as good. A special chemical feature of these waters is the waste salinity in the northern part of groundwater body No. 3 in the area of Trzebież and Police and groundwater body No. 7 in the area of Stargard, Chociwel. The environmental objective for all groundwater bodies within which the project is situated is to maintain good water level. The report shows that, due to the implementation of the investment project, interferences in the groundwater environment during construction works will occur. Some disturbances and

changes will be temporary until construction works have been completed (e.g. replacement of the substrate and associated excavations for facilities and infrastructure). Despite the temporary nature, these impacts will intensively affect the area. However, they are unavoidable in the implementation the project of such type. At the construction stage of the onshore part, earthworks will cause interference in the morphology of the area, and in the layers of the soil - up to several meters. In order to reduce the possibility of soil pollution at the stage of preparation and implementation of the investment project, it is necessary to implement the project while taking into consideration the principle of minimization of land occupation (Article 74 section 1 of the Act of April 27, 2001 - Environmental Protection Law) and transformation of its area, and carrying out land reinstatement after the works are completed. Works related to the construction of the project will result in: removal of the top layer of the soil, disturbance of the ground surface associated with the excavations carried out, soil replacement, movement of heavy equipment in the area as well as possible short-term and transient lowering of the groundwater table if they occur in the excavation or inflow of surface waters that make it difficult to carry out the works. Topsoil and soil from excavations will be stockpiled near the works executed. The topsoil layer will be collected in piles to protect valuable microorganisms (protection against changes in temperature, humidity and soil structure). After the earthworks are completed and the excavations backfilled, the entire working strip will be subject to reinstatement. There will be a change in the ground surface in the places where facilities are built and zoning necessary for the new function. Due to the nature of the works carried out to deepen the watercourse, hydrogeological conditions will change locally – the concreting of the riverbank will locally change the hydraulic contact between the river and the drained layers of groundwaters. The impact will also occur as a result of works related to possible drainage of excavations during construction. However, on the scale of the groundwater bodies, the above impacts will not be significant as their range will be local, and in the case of works related to drainage during construction, additionally the impact will be short-lived and will recede after the completion of the investment project. The construction of the handling and storage terminal will require reinforcement of the shore and the underwater slope as well as the deepening of the Police Channel. These works will be undertaken within approx. 10% of the coastline and the bottom of the Police Channel surface water body. The presented analysis shows that these works will amplify the activities planned in the Flood Risk Management Plan in the Oder River basin area [PZRP, 2016] and previously indicated in the Masterplan for the Oder River Basin Area. Quoting the report “in the Draft Environmental Impact Forecast of the Water Maintenance Plan covering the Lower Oder and West Pomerania Water Region [PUW, Grontmij, 2015], a methodology for environmental evaluation of dredging activities including removal of aggregate mud and scree was developed and adopted. It was pointed out that in the case where the blockage removal (dredging) works are carried out on the section below 1.2 km of the surface water bodies and do not cover more than 12% of the length of the surface water body course (as in the case of planned investment project within the handling and storage terminal on the Police Channel), then they will influence the condition of the surface water bodies to a small extent, at a fixed 5-degree scale of impact (negligible/lack, small, moderate, substantial, significant).” Also the planned construction of a water intake for fire-fighting purposes of the handling station will be combined with works related to the reconstruction of the berth and will not significantly affect the condition of the water and the achievement of environmental objectives. It is necessary to obtain the water permit for the construction and operation of the water intake from the Oder River. The analysis presented in the report also shows that the impact of the project on the biological elements of the waters at the investment project implementation stage will be moderate with the use of minimizing actions indicated in the report. The construction stage will also be associated with the generation of gray and black water. The wastewater from portable devices will be collected by a specialist company.

At the stage of work execution it is possible to increase the risk of occurrence of emergency situations which, in the event of hazardous substances entering the environment, may indirectly contribute to the contamination of the nearest watercourses. However, these situations are impossible to foresee and predict. The construction methodology will utilize, to the extent possible, construction materials ready and prepared for direct use. During the implementation of the investment project, caution should be exercised, since removal of surface formations will reduce the path and time of migration of possible pollutants into the groundwater environment. This also applies to abnormalities in waste management or poor work organization. Consequently, this decision sets out the conditions to limit these impacts, including: applying to drainage works, dredging, as well as the supervision of an ichthyologist. In his opinion, the Director of the Maritime Office in Szczecin noted the need to protect the aquatic environment during the implementation of the investment project. The implementation of the investment project in question will be related to the generation of waste. In accordance with the Regulation of the Minister of the Environment of December 9, 2014 on the catalog of waste products (Journal of Laws of 2014, item 1923), it will include the waste classified, inter alia, into the following groups: 17 - waste from construction, repairs and demolition of civil structures and road infrastructure, 08 - waste from the production, preparation, marketing and use of protective coatings (paints, varnishes, ceramic enamels), putties, adhesives, sealants and printing inks, 12 - waste from forming as well as physical and mechanical surface treatment of metals and plastics, 13 - mineral hydraulic oils, 15 - packaging waste (sorbents, wiping cloths, filter materials and protective clothing not included in other groups), 02 - vegetable waste. Waste from group No. 20 will be produced - municipal waste including selectively collected fractions - in smaller quantities. Waste may contribute to environmental pollution when stored inappropriately. Lack of proper insulation under the place where waste will be stored will cause various chemical compounds to enter groundwater and surface water and soil as a result of washing out (rainfall). All waste generated during the construction and decommissioning stage should be pre-segregated and collected on the site and then transferred for recycling or to specialized waste disposal companies. Waste should be stored in a designated place in an environmentally safe manner without providing for possibility of mixing hazardous wastes with non-hazardous and inert waste. The soil from excavations, after meeting the requirements of the technical specification, can be reused at the site of the investment project implementation. Soil which does not meet the requirements to be used for embankments will be exported to the dump area. The waste of the dredging spoil will be qualified only after the necessary testing have been completed. The spoil (from dredging works) extracted onto shore, whether it is hazardous or not, should be treated as a waste. In order to ensure that the extracted spoil is managed in a complying manner, including confirmation of the degree of its contamination, this decision obliges the investor to: 1. Carry out a survey of bottom sediments before the dredging works are commenced as well as the qualitative state of the extracted spoil, in order to determine the presence of hazardous substances in the spoil, in accordance with the Regulation of the Minister of the Environment of June 12, 2015 on recovery or disposal of waste outside systems or devices (Journal of Laws of 2015, item 796). 2. If contamination of the spoil with hazardous substances is found, it should to be treated in accordance with regulations as waste bearing code 170505*, e.g. transfer it to an operator authorized to treat such waste for recovery or disposal. 3. Spoil not containing hazardous components and complying with the requirements of the above mentioned Regulation shall be stockpiled or processed on plots intended for this purpose in accordance with the decision of the Police Staroste dated January 18, 2016, ref. No. SR.6230.1.2016.SD, as amended by decision of May 31, 2017, ref. No. as above. This issue was also highlighted in his decision by the Director of the Maritime Office in

Szczecin. Since issues related to treating, among others, with dredging spoil other than this mentioned in 170505* on the territory of the Police Seaport belong to the competence of the Police Staroste, who issued a permit for waste management (recycling) in a manner consisting in the treatment of such waste out of the plant, these conditions are not specified in this decision. In the course of investment works, in the absence of adequate supervision on the contractor`s side, emergency situations or uncontrolled random situations may occur. These are situations of incidental character that should not occur during the proper implementation of the project. However, the report identifies actions aimed at minimizing the occurrence of such risks by, among others, stocking the construction site with the appropriate amount of sorbents, the use of fully operational construction plant and selective collection of the generated waste in the containers intended purpose, in designated places and their handover for disposal to authorized operators. Given that the impact of wastewater and solid waste impact at the construction stage will be of a temporary nature and the environmental protection arrangements indicated in this decision will be adopted by the contractor, it should be assumed that the implementation of the project will not affect the quality of the groundwater environment. This investment project should not cause excessive pollution of the groundwater environment due to the reduction of contaminant generation also during the operation phase. For the purpose of the operation of the project, it is necessary to provide water for process and fire protection purposes. The operation of the investment project will not contribute to a direct reduction of surface water and groundwater resources. Water intake will be carried out based on two existing surface water intakes from the Oder River and the newly designed water intake from the Oder River in the area of the handling and storage terminal investment project for fire purposes. According to the report, the water collected by the unit for the purposes of propylene production and the handling terminal together with the ongoing water intake for the plant will not exceed the maximum level specified in the integrated permit (240,000,000 m3/y) issued by the Marshal of Zachodniopomorskie Province on April 14, 2015. ref. No.: WOŚ.II.7222.13.9.2013.MG. Water for personnel uses (estimated in the report at approx. 1164 m3/y) will be supplied by the internal water supply systems of the plant. Operation of the propylene production unit will entail the generation of industrial wastewater. Industrial and process wastewater from propylene production unit as well as auxiliary units will be collected in the planned industrial wastewater drainage system and then directed to the planned industrial wastewater treatment plant. For 110/10/6 kV transformers, leaktight pans are planned, installed in the immediate vicinity of the building, made in such a way as to accommodate 100% oil from transformers and 20% reserve for rainwater. The ongoing drainage of rainwater from the transformer stations will be carried out using a typical oil/water separation system, equipped with an emergency state signaling system. Industrial wastewater discharge is not envisaged in the area of the handling and storage terminal. The drainage of water from the cooling water circuit will take place through the post- cooling and rain water drainage into the Barkowy Channel and then into the Oder River. Gray and black water generated in sanitary facilities will be collected in two tanks for gray and black water, from where it will be pumped through the internal sewerage system into the existing sanitary sewerage system. Rainwater and melt waters from surfaces where contamination may occur (e.g. filling stations, storage tanks fields, roads and yards, reservoir backfill surfaces) are discharged to the planned rainwater drainage system connected to the existing rainwater drainage system of the plant. Before discharge to the receiver, this wastewater will be treated using a separator and a sand trap. The receiver of the wastewater will be the Bystrotok Channel and further the Oder River in the area of the terminal location. The report shows that the contractor will provide technical supervision over the constructed systems and protections of the groundwater environment. The Quality Control and Assurance Program developed by the contractor at the proposal preparation stage will be detailed in the

implementation process. The analysis presented in the report shows that the operation of the project will not significantly affect the composition and quality of wastewater currently discharged from the site of the plant. It will probably be necessary to update the water permit with the discharge of wastewater into the waters. The propylene production process is an example of low-waste technology. The main waste will be catalysts subject to recovery processes in external companies. All waste generated during the operation phase, including hazardous waste, will be stored in designated locations, designed and built in a manner ensuring environmental safety. Their export by specialized means of transport will be ensured, via non-collision route to the sites of further processing. The management of waste from vessels transporting the raw material will be carried out as part of the operation of the Police Seaport and will be subject to the Port`s own management plan for waste and cargo residues from vessels in the Police Seaport. During the operation phase, the protection of the surface of the ground will consist in maintaining the operational fitness of the equipment and process facilities, for wastewater treatment, waste disposal, removal of possible consequences of failures. In addition, all the recommendations set out in this decision concerning the procedure, appropriate and compliant with the regulations, of handling waste and wastewater from the construction and operation phase will affect the protection of the groundwater conditions of this area. Emission of air pollutions. In the immediate vicinity of the investment project area there are no areas for which stringent pollution standards apply on the basis of the provisions of the Regulation of the Minister of the Environment of January 26, 2010 on the reference values for certain substances in the air (Journal of Laws of 2010 No. 16, item 87), such as national parks or areas of health resort protection. The report takes into account the conditions arising from the current regulations. In the analysis the current state of air quality in the area of the project was used, as provided by the Zachodniopomorskie Provincial Inspector of Environmental Protection in Szczecin by letter dated October 19, 2016, ref. No.: WM.7016.1.184.2.2016.MBU. During the implementation of the project, the emission of pollutants into atmospheric air is of temporary and local character. At the stage of work execution, the sources of emissions of gaseous pollutants will be engines of vehicles and construction plant involved in earthworks and transportation, and the source of dust will be the earthworks, transfer of cement and construction aggregates and the movement of vehicles around the area. The report indicates that the works will be carried out during daytime hours. These are unorganized emissions that will stop after the investment project completion. The report analyses these impacts and indicates that the impact of the project on air quality can be limited by the following actions: − shutdown of engines during standstill or loading of construction plant and lorries, executing construction works with construction equipment in good condition; − activities to reduce unorganized dust emissions from the construction site, such as: transportation of bulk materials by vehicles fitted with dust-limiting tarpaulins, introduction of speed limits of vehicles at the construction site, cleaning of the construction site by means of equipment fitted with technical solutions limiting raising of dust (e.g. the use of suction sweepers), in the event of adverse weather conditions (e.g. strong wind in the absence of precipitation) - covering heaps of bulk materials with tarpaulins and/or sprinkling them with water; − not using cement and other materials in bulk form (wherever possible) on the construction site by supplying ready-made mixed concrete produced in external plants; − perform wet cutting of concrete elements. This decision sets out the conditions for the project implementation that will reduce emissions of gases and dust into the environment.

The report shows that during the operation phase the most important sources of emissions of substances into air will be: 1. Process portion of the propylene production unit with infrastructure including: − assembly of 4 fired heaters of the propane dehydrogenation reactor - organized emission of residual gas combustion products - nitrogen oxides, carbon monoxide, sulfur dioxide and dust (including PM10 and PM2.5 dust); − the CCR catalyst regeneration section - organized emissions of chlorine, hydrogen chloride and sulfur dioxide; − flare - unorganized emission of combustion products of reaction gases: nitrogen oxides, carbon monoxide, sulfur dioxide and aliphatic hydrocarbons; − a process steam boiler, fired by residual gas (optionally: LNG gas, methanol or waste solvent) - organized emissions of: nitrogen oxides, carbon monoxide, sulfur dioxide and dust (including PM10 and PM2.5 dust). 2. The handling and storage terminal, including: − boiler house with 1 or 2 propane-fired boilers - organized emission of nitrogen oxides, carbon monoxide, sulfur dioxide and dust (including PM10 and PM2.5 dust); − torch (flare) - unorganized emissions of gas combustion products: nitrogen oxides, carbon monoxide, sulfur dioxide and dust (including PM10 and PM2.5 dust); − unorganized emissions of fuel combustion products in the engines of vehicles moving on the internal premises of the Plant as well as vessels maneuvering and mooring at the handling and storage terminal: mainly emissions of nitrogen oxides, sulfur dioxide, carbon monoxide, dust and hydrocarbons.

In the field of air protection, the following is envisaged, inter alia: maintaining the parameters of the emitting devices at the level specified in the report or not worse than those parameters, ensuring the leaktightness of the systems, combustion of the excess gases in the flare, including those from ventilation of tanks and units, and generated in emergency situations (reduction of hydrocarbon emissions), small amounts of sulfur compounds existing in the process will be neutralized and discharged along with wastewater (reduction of gases and odors), the unit will have vapor treatment systems for loading and unloading of volatile substances onto (or from) the vessels. The solutions applied are in line with the reference document guidelines on best available techniques (BAT) for propylene production units). Calculations of atmospheric air pollution status presented in the report were made in accordance with the Regulation of the Minister of the Environment of January 26, 2010 on the reference values for certain substances in the air. Calculations of the spreading of pollutants in the aspect of cumulative interaction with neighboring facilities of Zakłady Chemiczne "Police" S.A. were also carried out. The analysis showed that, using the assumptions presented, the project at the operation stage will not result in exceeding the permissible levels of substances in the air and the averaged annual reference values for all analyzed substances. Monitoring of emissions of pollutants into the air shall be envisaged in accordance with the required regulations. Noise emission. Industrial buildings predominate in the area of the planned project. These are not areas covered by acoustic protection. The nearest areas subject to acoustic protection are: − at a distance of approx. 0.6 km - single- and multi-family housing development in Tatynia, − at a distance of approx. 1.5 km - farmstead development in Wieńkowo, − at a distance of approx. 1.5 and 2.4 km from the extreme facilities of the GAP system – in Police – Jasienica: single-family residential and service development, as well as School Complex No. 2,

− at a distance of approx. 1.1 - 1.5 km from the terminal - in Police, a recreation and leisure area, a residential and service area, and the area of multi-family residential development, − at a distance of approx. 1.5 km - farmstead development in Trzeszczyn, Regulation of the Minister of the Environment of June 14, 2007 on permissible noise levels in the environment (Journal of Laws of 2014, item 112), for these areas determines the permissible noise level values in the environment from: 50-55 dB for daytime and 40-45 dB for night time. Moreover, in the environment of the investment project there is housing development within the areas which in the spatial development plans is intended for industrial activities which are not subject to acoustic protection. During construction works there will be periodic acoustic impact caused by demolition and construction works, including the operation of heavy machinery and transport vehicles. The operation of heavy equipment used during the performance of such investment project is characterized by high levels of noise emitted to the environment and causing vibration in the environment. This period will constitute an acoustic nuisance for the inhabitants of the above- mentioned areas. Accordingly, this decision specifies the organizational and regulatory recommendations to reduce these nuisance, including construction works performed in daytime. The conditions for the location of the construction site back-up facilities in relation to the residential development are also indicated. The construction site back-up facilities should be located as far as possible from the buildings serving as the residential development – this is related to the propagation of sound in the open space. The aim should be to minimize the number of passes of heavy vehicles and machinery in the vicinity of the residential buildings. The report indicates that the vehicles will be running on the existing roads and road transport will be limited to water transport in terms of the implementation of the offshore part. The report says that in the operation phase of the propylene production unit together with handling and storage terminal including technical infrastructure, noise emissions to the environment will occur due to the operation of numerous stationary devices included in the unit, such as pumps, compressors, fans, gas exhaust vents, propulsion engines, refrigeration equipment, process heat generation equipment. These devices will be external sources of noise, i.e., they will be mostly located outside buildings, and will emit noise directly into the environment. Noise from process buildings will be emitted to the environment through external building partitions, i.e., walls, roofs, doors and windows. Building partitions will cause partial noise suppression. Both propane and the final product will be delivered by pipelines of the offshore handling terminal. An important noise source directly related to the transport of the raw material and product will be the operation of the vessels’ engine rooms (maneuvering and mooring within the terminal), current generators, vessel ventilation systems and unloading equipment. Noise emissions from vehicles (approx. 50 heavy- and 50 light-duty vehicles a day) will be of secondary importance in shaping environmental acoustic conditions due to low expected traffic at the plant site and much higher noise levels from stationary equipment included in the designed and existing systems. All listed sources will emit noise to the environment 24/7, in continuous mode, excluding maintenance and repair outages. In order to determine the impact of the planned investment project on the condition of the acoustic climate in the operation phase, the calculation of sound propagation in the environment was made. The report presents assumptions, methodology and legal basis for the analysis. The results are presented in tabular summaries and acoustic maps in relation to the nearest residential development and acoustically protected areas. The analysis of the results of the acoustic calculations shows that the operation of the project will not result in exceeding the permissible noise levels in the environment. The calculated values of the equivalent A-weighted sound level are below the limit values for all receiving points. For the receiving points of the single-family residential development in Tatynia, the calculated values of the equivalent A-weighted sound level are maximum 38.6 dB for Variant 1 and 39.5 dB for

Variant 2. Pursuant to point 9 of PN-ISO 9613-2 “Acoustics. Attenuation of sound during propagation outdoors. General method of calculation”, the accuracy of the method of calculation of the noise level distribution shall be ±3 dB. Therefore, in order to reduce noise emissions to the environment to the required level, acoustic protection such as silences and sound-absorbing and insulating enclosures shall be provided for the equipment to be installed within the designed unit,. Additionally, pursuant to the information in the report, in order to comply with permissible noise levels in the environment, before the commissioning of the planned units, a program of silencing the dominant noise sources of existing units should be implemented, in accordance with the declaration of Members of the Management Board of GAP on reduction of acoustic power of main noise sources, according to the study drafted by P.T. “ENERGOPIAST” Sp. z o.o. Zakład Izolacji Akustycznych (Acoustic Insulations Facility) in November 2014, titled “The concept for limiting noise emissions from units and equipment of production plants”. Electromagnetic radiation Within the project (in the GPVI 110/10/6 kV substation), the construction of the switchgear and the installation of two 110/10/6 kV oil transformers with a power of 80 MVA is planned. Other medium and low voltage devices will be installed in a separate process building. An important phenomenon accompanying the operation of each power line and substation is the presence of an electromagnetic field with a frequency of 50 Hz around these units. According to the analyses presented in the report, both in the surroundings of the substation and the (underground and above-ground) power lines the permissible values shall not be exceeded for the electric and magnetic fields in places accessible to the population, as defined in the Regulation of the Minister of the Environment of October 30, 2003 on the permissible levels of electromagnetic fields in the environment and methods of checking compliance with these levels (Journal of Laws of 2003 No. 192, item 1883). Natural environmental The investment project in question will be performed mainly in industrial areas, anthropogenically altered, in the vicinity of the facilities of the existing plant (Zakłady Chemiczne “Police”) and the seaport in Police. The report shows that for the purpose of the planned project a detailed environmental survey of the area was performed, including plants, animals, fungi, and habitats. The onshore part of the investment project is located in an area not covered by any form of nature conservation. On the other hand, the water section, comprising a fragment of the Oder River, is located in Natura 2000 areas: of Community importance - the Oder River Mouth and the Szczecin Lagoon PLH 320018, as well as in the area of the Szczecin Lagoon PLB320009 established for the protection of birds. The investment project is located in the migration corridor between the areas of the Szczecin Lagoon PLB320009 and the Lower Oder Valley PLB20003. The environmental survey presented in the report indicates within the water section of the investment project (in the Police Channel Bed): − the depletion in small crustaceans and the absence of protected species; − the occurrence of 10 species of fish in the areas directly affected by the project: ruffe, roach, common bleak, common bream, white bream, blue bream, vimba bream, three- spined stickleback, common perch, zander; low level of species diversity was found due to, among others, the strong advantage of the ruffe; no spawning grounds were found and areas of development of juvenile fish; − poor differentiation of vegetation (single shoots of coontail, pondweed, yellow water- lilly, reed rush in the coastal part). The land area intended for the handling and storage terminal is a former silt-dumping yard with

average natural values. It is little floristically differentiated (aggregation of reed grass, patches of corynephorus grass, with the participation of dwarf everlast, in moist places – common reed). The presence of protected plant species was found in the investment area. In addition, the occurrence of fungi and lichens was found, including: livewort, cup lichen and cladonia chlorophaea, lichen of the peltigera species. There were no sites of protected species of lichens, fungi and mosses. The area is overgrown with trees (mainly pine) and shrubs (with the predominance of basket willow). Within the construction site of the terminal, in the onshore part, in 2009 there were trees indicating a poorly conserved and fragmented natural habitat – 91E0 Riparian forests of willow, poplar, alder and ash spines (Salicetum albo-fragilis, Populetum albae, Alnenion glutinoso-incanae, Cardamino-alnetum). Due to the strong transformation of this area, no measures are planned aimed at minimizing or compensating the natural environment. As regards the onshore part of the PDH Unit, trees and shrubs were removed in plots Nos. 3017/19, 3016/104, 815/13, 3010/32 and 3010/40 of cadastral district No. 2 in Police until February 29, 2016, according to the decision of the Mayor of Police of January 26, 2016 (ref. No. OŚ.6131.141.2015.JJ), allowing for the removal of 6,975 trees and 67 m2 of shrubs. In terms of the offshore area (of the handling and storage terminal): − on plots Nos. 3029/23, 3029/26, 3029/25 and 3029/22 of cadastral district No. 3 in Police, 468 trees and 1,068 m2 of shrubs were removed by December 31, 2016, in accordance with the decision of the Mayor of Police of September 15, 2015 (ref. No. OŚ.6131.139.2015.JJ); − on plots Nos. 3029/25, 44/9, and 44/7 of cadastral district No. 3 in Police, according to the decision of the Mayor of Police dated July 6, 2016 (ref. No. OŚ.6131.47.201.PN), as amended by decision of February 10, 2017 (ref. No.: OŚ.6131.47.1.2016.PN), allowing for the removal of 90 trees and shrubs covering the total area of 1,375 m2, the deadline for the removal of the trees and shrubs was established until February 28, 2018. Due to the planned and already performed clearings, the investor plans new plantings. During the survey performed during the 2009 breeding season, 87 species of nesting birds and possibly nesting birds were found, of which 79 species are subject to legal protection, including 4 from Annex I to the Bird Directive (great bittern, kingfisher, Western marsh-harrier and red-backed shrike) and the species listed in the Polish Red Book (common shelduck, red- crested pochard, and bearded reedling), which inhabit the area of the existing sedimentation tanks and flood waters around them. The area of the sedimentation tanks, the phosphogypsum heaps and the flood water is a hunting area for claw birds from Annex I to the Bird Directive (red kite, white-tailed eagle, and peregrine falcon). There were few species of amphibians and reptiles, including green frog, smooth newt and common toad. In the area of the investment project there were traces of beaver (a species from Annex II of the Habitats Directive), no breeding holes were found in this area. The survey shows that traces of beavers were found along the entire lower segment of the Oder River. In addition, there are game animals here. The presence of bats was also found. The area of the planned investment project is already significantly changed by man, there are no permanent hiding places, including breeding colonies, for bats. Bats are concentrated in the area of the channels in Police, where they have their shelters (approx. 0.4 km from the investment project – the area of Natura 2000 the Police Channels PLH320015). The implementation of the project will be associated with the impact on the natural environment in this area, inter alia, through: − interference with the surface of the earth (destruction of the soil and plant covers); − felling of trees and shrubs which have already been largely performed in connection with the preparatory works; − scaring of animals, resulting in the periodic withdrawal of individual species outside the project area; − temporary deterioration of habitat conditions in the surroundings of the project as a result of heavy equipment operation, extraction works, storage of building materials, soil from

excavations, location of the construction site back-up facilities, etc. In order to limit the interference with the land surface, this decision identifies a number of activities, such as: the organization of the construction site and its facilities taking into account the principle of minimization of land occupation and its transformation, and after the completion of the works – the land reclamation to be performed, whereas during the construction works: not disturbing the land surface and not destroying the vegetation outside the area designated for the works’ performance; in the course of earthworks: accumulation of soil and topsoil in piles, and after its completion: using them in the development of green areas. In view of the planned new plantings of tree and shrub species, the decision indicates that the selection of the site for these activities should take into account the habitat and flood conditions. Dredging the fairway through dredging works and waterfront construction works will cause the physical removal of the layer of bottom sediments in which benthos is present. Thus, periodically, on the site of the spoil extraction, the benthos will be destroyed. However, it is planned to perform these works in the selected sections once in the shortest possible period, so that when the works have been moved to the next place, the benthos could reproduce in the refilled location. The Oder River is an ecological corridor for the migration of fish and lampreys, but during the construction phase there is no risk and or any significant reduction in this migration, as the construction works will take place in a small part of the river's beds. However, in order to protect the ichthiofauna, it was recommended that the works in question (including dredging and silting) in the river bed were performed between March and the end of June so as not to interfere with the spawning and migration periods. These works should be carried out under the supervision of an ichthyologist. For amphibians, it was recommended that the coastline leveling of the Oder River be performed beyond the breeding season of green frogs between the beginning of April until the end of June in order to reduce the immediate threat to the species. On the other hand, the leveling of the terrain with periodic ponds, which make habitats and breeding sites for amphibians (newt and common toad) was recommended to be performed in the period between August and March. However, if it is necessary to continue these works within the indicated period, it should be made under the natural supervision (of a herpetologist). Any destruction of habitats and breeding sites of protected amphibian species requires decisions concerning derogations from Article 52 of the Nature Conservation Act issued by the Regional Director of Environmental Protection in Szczecin. Excavations can become a trap from which amphibians, reptiles and small animals cannot escape. Therefore, it is necessary to control the construction site and any excavations. When animals are found, employees should notify the environmental supervision and allow the animals to peacefully leave the construction site. The implementation of the investment project will result in the depletion of habitats (including breeding places) of birds. However, the report shows that such interference will not constitute a significant change in the living conditions of animals. The birds present in the area will be scared away for the period of the investment project, and the destruction of their potential breeding biotopes during this period will result in minor losses in a given season, as the birds will migrate to the neighboring areas. The area of the planned investment project is mainly used as a feeding and recreation site for some birds associated with both Natura 2000 areas (Lower Oder Valley and Szczecin Lagoon), and is located in the ecological corridor connecting these two areas. According to the analysis of the flight of birds, it is clear that the planned investment project is not located in the main air corridor used by birds. The vast majority of bird flights took place in the Oder River main stream, away from the planned investment project. The authors of the report clearly indicate that these observations were confirmed by studies carried out using a radar. However, during construction, due to the use of high construction equipment (pile drivers, cranes), it is necessary to monitor the mortality of birds

and their routes. The risk of additional mortality may pose a problem which shall require minimization measures, in particular in the autumn and winter periods (fog and the large number of migrating birds). The planned investment project is located on the edge of the corridor where birds migrate; once the reeds from the neighborhood of the investment project have been removed, the habitat in the vicinity of the port shall become less attractive, thus disturbing the functioning of the ecological corridor, the main part of which is Szeroki Nurt (Oder River); still, the disturbance in question will probably be negligible in the operation phase. Other animals that will be scared away during the construction works will use their other potential sites in the area. As a result of the analyses, a number of implementation recommendations for the protection of natural environment have been identified in this decision. It is indicated that the works should be performed under natural supervision. The operation of the project will not result in any changes in the structure of the animal species in the surroundings of the project. In the opinion of the local authority, the implementation of the project in accordance with the findings of the environmental impact report and the conditions set out in this decision will not result in a significant negative impact of the investment project on the natural environment, including Natura 2000 sites, during the project operation. Nevertheless, pursuant to the findings of the authors, for the duration of the investment project performance, there is a need to monitor the mortality of the passing birds. Impact on the landscape The said investment project is located in the area of the City of Police, in a landscape with low visual appeal (see P. Śleszyński, 2007), which is influenced by the anthropogenic activity of Zakłady Chemiczne “Police” S.A., with typical industrial landscape dominant features (plant buildings, high chimneys, and phosphogypsum dumps). The area of the investment project and the adjacent areas are subject to strong anthropogenic impacts associated with industrial development. In the immediate vicinity of the planned project, the technical and production infrastructure of Zakłady Chemiczne “Police” S.A. is located, in particular the structures and equipment for the production of ammonia, urea, power agents, as well as warehouses for fertilizers. During the construction phase, the back-up and other facilities of the construction site will be located according to the principle of the minimum occupation and transformation of the area, in the designated area of investment project; the existing roads will be used to operate the construction site, with new plantings of trees and shrubs planned for the investment project area, and after the completion of the construction works the site will be cleared and put in order. These are the activities that will minimize the impact on the landscape. Therefore, the implementation of the project in question will not result in a significant change in the nature of the area. Impact on monuments, cultural heritage items and material goods The area of the investment project is not covered by conservation officer's protection, since there are no monuments and cultural heritage objects entered in the register. The closest architectural monument is located about 900 m north-west of the plant (the evangelical church in Tatynia). There are no valuable material goods in the area of the investment project concerned. During the construction work, there is no risk of damage to buildings located in the area of the investment project concerned. The vibrations of the ground during construction, due to their expected low strength and duration, and the long distance from the buildings will not cause any significant impact. During the operation of the investment project, emissions of pollutants into the air will not result in a significant increase in concentrations of substances that may affect the condition of buildings. The impact on material goods at the stage of decommissioning of the project will be similar to

that at the construction stage. Construction and reconstruction of the existing technical infrastructure The implementation and trouble-free operation of technical infrastructure equipment which require reconstruction under the investment project will have little impact on the environment. Any changes and environmental disturbances caused during the reconstruction phase will be temporary and reversible, while compliance with the relevant standards and guidelines should ensure the safe performance and trouble-free functioning during the operation phase. Possibility of cumulative impact on the environment The planned investment project is a continuation of the existing Plant activity and the operation of the port in Police. The analysis presented in the report took into account the cumulative impact, including the current state of air quality in the area of the project, reference to the current water consumption and the amount of discharged wastewater, balancing them within the scope of the obtained water permits. Due to the considerable distance of the planned handling and storage terminal from the planned “Mijanka” port terminal planned for expansion (approx. 1.5 km), the cumulative impact of the above projects on the air quality and the condition of the acoustic climate is not expected, neither during the implementation nor operation phases of both projects. Limited use area. There are no premises for the project resulting from Article 135 of the Act of April 27, 2001 - Environmental Protection Law (Journal of Laws of 2017 item 519), to create a limited use area. Possibility of interactions arising in a cross-border context. The aspect of cross-border impacts, i.e. those which may cause significant impact of the project on areas located outside Polish territory, shall be considered negligible. Cross-border impact will not occur in the case of investment project implementation. Emissions during the construction and possible decommissioning phase will be temporary, limited as of the time of their execution and to the site of works and areas located around the road. According to the analyses presented, environmental quality standards will not be exceeded during operation. Excessive emissions of gases and dust are kept within the boundaries of the land to which the investor holds legal title. The expected values of concentrations of pollutants discharged into the groundwater environment will meet the applicable standards. Environmental impacts will be local and will not extend to further cross-border distances. In view of the above, the authority did not find any premises for investigating the cross-border impact. Impacts associated with the possibility of occurrence of a major failure. In accordance with Article 3 section 23 of the Act of April 27, 2001 - Environmental Protection Law (Journal of Laws of 2017 item 519) a major failure shall mean an event, in particular emission, fire or explosion, occurring during an industrial process, storage or transportation, in which one or more hazardous substances are used, leading to the immediate hazard to life or health of people or to the environment or the delayed occurrence of such a hazard. Grupa Azoty Zakłady Chemiczne Police S.A. qualifies as a plant with a high risk of a major industrial failure, according to the Regulation of the Minister of Economy of April 9, 2002 on the types and quantities of hazardous substances, the presence of which at the plant determines the said plant to be qualified as a plant with increased risk or a plant with a high risk of a major industrial failure (Journal of Laws of 2002 No. 58, item 535, as amended). This project is a complex of handling, storage, loading and propane-to-propylene processing units. The project is also a complex of propylene storage and loading units. Both substances (propane and propylene) have significant physicochemical characteristics which generate the risk of accidents or disasters (in the event of a failure or damage to the unit). In addition, much smaller quantities of other substances will be used in the facility, such as sodium hydroxide solution, catalysts (based on precious metals including platinum), hydrogen sulfide, methane,

methanol (methyl alcohol), lubricants (mineral oils or naphthenic oils), solvents, sodium nitrate, sulfuric acid, sodium triphosphate. The use of such other substances will be restricted to small quantities and will be limited to only a few sites in the production unit. One of these (hydrogen) is a by-product from this unit and will eventually be exported to other customers. No storage of hydrogen in any form on the site of the unit is planned. The report identifies the documents that were used to analyze the risk of failure and indicates that the best global experiences for designing the layout of the entire unit were used to implement the highest safety requirements. Both companies preparing FEED (Variants 1 and 2) carried out in-depth safety analyses. Technip, in collaboration with the Industrial Chemistry Research Institute, and Tecnimont, in collaboration with Biproraf, drew up safety reports for the developed concepts for the construction of PDH Unit. The report describes the sites in the PDH Unit where a major industrial failure may occur (Volume II) and scenarios for such events. The risk of a major failure in the PDH Unit results from the possibility of the unsealing of the system and release of hazardous substances contained in the process. This unsealing may be caused by a sudden breakage of the process device (e.g. due to a material defect) or by a series of events in which process deviations, such as pressure increase, temperature rise or drop, as the result of stresses caused lead to the decrease of the mechanical strength of structural materials. The report shows that the mitigation of internal risks will take place primarily through the creation of an appropriate system of supervision over the entire process of design and execution of the PDH Unit. Climate The report presents the most significant pollutants that can occur in connection with the execution and operation. During the construction phase, these will be greenhouse gases emitted from the combustion of fuels by means of transport and construction machinery. The emissions of these pollutants will concentrate primarily within the area of works carried out. During the operation phase, emissions of pollutants into the atmosphere will be related to the work of the PDH Unit. The analyses presented in the report show that these emissions will not result in exceeding the permissible levels of the substances in the air. In the opinion of this authority, the implementation and operation of the project will not result in significant changes in the climatic conditions of this area. Nor will the permissible environmental noise levels and levels of wastewater be exceeded using the solutions indicated in the report and set out in this decision. The investment project will not affect phenological changes to flora and fauna within the boundaries of the investment project area and its surroundings. Thus, the implementation of the project and its operation will not result in changes in the natural environment. There will also be no threat to the biodiversity of this area. According to flood hazard and risk maps, the area of the planned project for the construction of the handling and storage terminal is not threatened by flooding from the Oder River side. On the other hand, it is partly threatened by flooding from internal marine waters exclusively within the area of the designed transmission pipelines. In this area significant fluctuations in groundwater levels occur, which depend on the level of the Oder River and the level of the Szczecin Lagoon. Due to the presence of the above factors, it is planned to place pipelines for pumping of the raw material (propane) and product (propylene) on a trestle bridge at a height of min. 5 m above ground level. At the design documentation development stage and then at the implementation phase, a stable structure of the trestle bridge will be designed and erected, ensuring that the risk of pipeline failure due to possible damage to the trestle bridge will be reduced. According to the report, the investor, holding knowledge of the possible impacts of climate change on the project, predicts the use of solutions that will reduce the effects of these impacts on the project and the environment.

Effect on human health. The main elements that can influence changes in the quality of stay and life of potential residents and users of areas adjacent to the planned investment project will be: emissions of air pollutants from moving means of land and water transport, construction equipment or performing dredging works as well as increased levels of noise emitted by all of these. These nuisances will occur primarily during the implementation phase. The conducted assessment of the impact of the project on the environment shows that the project will not result in exceeding the environmental quality standards in the operation phase. In the course of the procedure, opinions of sanitary inspection bodies were obtained, which provided positive opinion on the implementation of the project defining the conditions for its implementation (District Sanitary Inspector in Police). These conditions have been taken into consideration and detailed in this decision. According to the local authority, the report presented in the procedure analyzes the impact of the project on the environment, including people, referring also to possible social conflicts, presenting real impacts and ways of reducing changes in the environment. The report shows that in order to reduce the risk of social conflicts, the investor plans to provide information to the parties and the local public, among others, on the schedule and scope of the works carried out, organizing information desks in the commune, and developing a website. In the procedure involving the public, the public had the opportunity to familiarize itself with the documents relating to the case in question and to introduce comments and provide conclusions. During the term of this procedure, such comments were not submitted. This decision draws attention to notifying residents of the works carried out that may cause hindrance to communication or result in increased noise emissions. Local Spatial Development Plan According to Article 80 section 2 of the EIA Act, before issuing a decision on environmental constraints, the authority checks the compliance of the location of the project with the findings of the local spatial development plan. The area in which the project will be implemented lies within the limits of applicable local spatial development plans: − Resolution No. XLVI/361/06 of the City Council of Police of July 4, 2006 on the adoption of the local spatial development plan entitled: "Zakłady" − Resolution No. XII/82/2011 of the City Council of Police of September 27, 2011 on the adoption of a local spatial development plan entitled: "Port I". Moreover, the GPZ (main substation) line crosses two subsequent local plans: − Resolution No. XXX/239/08 of the City Council of Police of October 28, 2008 on the adoption of the local spatial development plan entitled: "Stara Fabryka”, − Resolution No. XLIV/340/01 of the City Council of Police of November 27, 2001 on amendments to the local spatial development plan of Police commune in the part concerning the villages: Trzeszczyn, Tatynia, Wieńkowo and Siedlice. From the examination of the case it follows that the project complies with the provisions of the local spatial development plan of the Police commune. In conclusion, as a result of an analysis of the documentation collected during the investigation, and in particular the report on environmental impact, it was found that in connection with the implementation and operation of the planned project: − there will be no impact on the environment in a cross-border context, since the environmental impact will only occur on a local scale in the Polish territory, − the planned investment project does not contradict the local spatial development plans, − the proposed measures aimed at reducing the environmental impact with regard to

noise protection, emissions of pollutants into the air, waste management as well as water and wastewater management, limit the impact of the project on human living conditions, − there will be no need to establish a limited use area as the conditions indicated in the report and this decision comply with the applicable environmental quality standards, − the planned investment project will not have a significant negative impact on the natural environment, including the functioning of Natura 2000 sites, and will not affect the consistency and integrity of Natura 2000 sites, − the impact of the investment project on water bodies was assessed as moderate. According to point 4 sub-point 1 letter a of the Regulation of the Minister of the Environment of August 27, 2014 on types of units capable of causing significant pollution of individual natural elements or the environment as a whole (Journal of Laws of 2014, item 1169), propylene production unit is recognized as a unit that requires an integrated permit. Comparison of the proposed technique with the techniques available presented in the report indicates that the presented and analyzed plant management technologies, including environmental protections and production, allow to meet the requirements of NDT (best technique available). On the basis of the analysis carried out on the documents attached to the application, including the report on the environmental impact of the project, the impact and potential risks to the environment, related to the implementation and operation of the project were determined and the conditions of implementation and operation of the project that provide environmental protection were defined. In view of the above, it can be concluded that the planned project will not infringe the applicable environmental standards and will not worsen the existing state of the environment, provided that the technical and processing parameters for which the analysis was carried out in the report attached to the application and fulfilling a series of recommendations resulting from the report also set out in this decision. Due to the type and scale of the planned unit, in accordance with the Regulation of the Minister of Environment of August 27, 2014 on types of units capable of causing significant pollution of individual natural elements or the environment as a whole (Journal of Laws 2014 No. 0, item 1169) the operator of the unit will be required to obtain an integrated permit. For such a unit it will be required to carry out, in accordance with §10 section 2 of the Regulation of the Minister of the Environment of October 30, 2014 on requirements for carrying out measurements of emissions and measurements of the amount of water intake (Journal of Laws 2014, item 1542): − periodic measurements of environmental noise, once every two years, taking into account the specificity of the noise sources; such measurements shall be carried out at the boundary of the nearest noise protected areas at receiving points, the location of which shall be determined in the integrated permit, − periodic measurements of air pollutant emissions. The detailed scope and frequency of measurements from each source of emission shall be specified in the integrated permit. Therefore, in this decision the obligation to carry out monitoring in this respect and to carry out a post-implementation analysis was abandoned. In this decision, given the scale of the project and its location in the ecological corridor, the investor is obliged to carry out environmental monitoring during the implementation phase of the investment project, in conjunction with Article 82 section 1 point 2 sub-point b of the EIA Act. Following the analysis of the submitted environmental documentation, no premises were found to assume an obligation to carry out the post-implementation analysis and to carry out a reassessment of the environmental impact of the project in the context of the issuing of decision referred to in Article 72 section 1 point 1 of the EIA Act. Based on the analysis of the above-mentioned materials, it can be concluded that taking into account the technical and processing solutions presented and preferred in the report and conditions of implementation and operation of the investment project as well as adaptation of these solutions and conditions to the additional requirements specified in this decision as well as other opinions and decisions

obtained and necessary to obtain and applying them in design, construction and operation safeguards the environment from the effects of the planned project. At the same time, the analysis of the report on the impact on the environment confirmed that the data on the project at the stage of issuing decisions on environmental constraints allowed to adequately assess its environmental impact. The procedure for issuing a decision on environmental constraints is carried out at the request of the entity planning the implementation of the investment project, in accordance with Article 73 of the EIA Act, which states that the procedure for issuing a decision on environmental constraints is initiated at the request of the entity planning to undertake the project implementation. This decision was issued based on the provisions of the EIA Act taking into account, i.a.: − the results of the opinion of the sanitary inspection bodies and the approval of the Director of the Maritime Office in Szczecin, − the findings contained in the report on the environmental impact of the project, − results of the procedure involving public participation (no comments), − analysis of cross-border impacts, in accordance with the provisions of Article 80, − the substantive and formal scope to be taken into account in the decision in accordance with Articles 82 and 85. In the procedure, the present decision was issued based on the provisions of the Act of June 14, 1960 - Code of Administrative Procedure (Journal of Laws of 2017, item 1257), including Article 104 stating the proper handling of the matter by the public administration body through the issuance of a decision, as well as the provisions of the EIA Act, i.a.: − Article 71 section 2 point 2, stating the necessity of obtaining an environmental decision for the project, together with an indication of the authority competent to grant the decision in question, − Article 75 section 1 point 1 sub-point c) and section 7, specifying that, in the case of a project carried out in marine areas and partly in marine areas, the decision on environmental constraints shall be issued by the Regional Director for Environmental Protection for the entire project, − Article 85 section 1 and 2 of the EIA Act, stipulating that the decision requires proper grounds and specifying its scope. The decision on environmental constraints does not give rise to any rights to the land and does not infringe ownership or third party rights. In accordance with the provisions of Article 6 of the Act of November 16, 2006 on stamp duty (Journal of Laws of 2016, item 1827, as amended), the applicant paid stamp duty on the performance of the official act, i.e. from the conduct of the procedure for issuing the decision on environmental constraints, amounting to PLN 205. An integral part of the decision is the appendix - Characteristics of the planned project, in accordance with Article 84 section 2 of the EIA Act. Due to the above, it was decided as in the sentence. INSTRUCTION The parties may appeal against this decision to the General Director for Environmental Protection through the Regional Director for Environmental Protection in Szczecin within 14 days of the date of notification of the decision.

REGIONAL DIRECTOR FOR ENVIRONMENTAL PROTECTION in Szczecin

Radosław Grzegorczyk 09/08/2017 To be received by: 1. Grupa Azoty Zakłady Chemiczne “Police” S.A. by proxy: Mr. Edward Fudro - ul. Kuźnica 1; 72-010 Police - ZPO 2. Grupa Azoty Zakłady Chemiczne “Police” S.A. by proxy: Mr. Artur Wójcik - ul. Kuźnica 1; 72-010 Police - ZPO 3. Grupa Azoty Zakłady Chemiczne “Police” S.A. by proxy: Mr. Artur Pudełko - ZPO to the following address: Multiconsult Poland Sp. z o. o. - ul. Bonifraterska 17; 00-203 Warsaw 4. Grupa Azoty Zakłady Chemiczne “Police” S.A. by proxy: Mr. Witold Domek - ZPO to the following address: Multiconsult Poland Sp. z o. o. - ul. Bonifraterska 17; 00-203 Warsaw 5. Infrapark Police - ul. Kuźnica 1; 72-010 Police - ZPO 6. Police commune - ul. Stefana Batorego 3, 72-010 Police - ePUAP 7. Police Starosty - ul. Tanowska 8, 72-010 Police - PUAP 8. Zachodniopomorskie Province - ul. Korsarzy 34, 70-540 Szczecin - ePUAP 9. Maritime Office in Szczecin - pl. Stefana Batorego 4; 70-207 Szczecin - ePUAP 10. Zarząd Morskiego Portu Police sp. z o. o. - Kuźnicka 1; 72-010 Police - ZPO 11. Mr. Adam Malczewski - Stowarzyszenie Ekologiczne BIOS [BIOS Ecological Association] - u. Jodłowa 3, Brzozówka; 87-123 Dobrzejewice - ZPO For the attention of: 1. Maritime Office in Szczecin - pl. Stefana Batorego 4; 70-207 Szczecin - ePUAP 2. The State Border Sanitary Inspector - Al. Wojska Polskiego 160; 70-481 Szczecin - ePUAP 3. The District Sanitary Inspector in Police - ul. Kresowa 14, 72-010 Police — ePUAP

Annex No. 1 - Specification of the project to the decision on environmental constraints for the project called: "Construction of a propylene production unit together with handling and storage terminal including technical infrastructure" in Police The project is located in Police, in Zachodniopomorskie Province, on the following plots: No. from No. Plot No. Cadastral district Area [ha] the Report 1 1 3017/19 No. 2 Police 0.9694 2 2 815/13 No. 2 Police 0.1398 3 3 338/8 No. 2 Police 0.0228 4 4 3024/7 No. 2 Police 0.0924 5 5 3016/104 No. 2 Police 3.0282 6 6 3010/32 No. 2 Police 4.3451 7 7 3010/40 No. 2 Police 12.3929 8 8 3016/123 No. 2 Police 1.4111 9 9 3010/33 No. 2 Police 0.0306 10 10 3323 No. 2 Police 13.102 11 11 229/11 No. 2 Police 0.0616 12 12 355 No. 2 Police 0.1017 13 13 3026/1 No. 2 Police 4.8107 14 1 56/1 No. 3 Police 0.18 15 2 56/2 No. 3 Police 0.66 16 3 3029/22 No. 3 Police 2.0669 17 4 3029/23 No. 3 Police 16.9195 18 5 3029/25 No. 3 Police 3.1336 19 6 3029/26 No. 3 Police 3.9611 20 7 57/10 No. 3 Police 0.6012 21 8 44/6 No. 3 Police 0.3563 22 9 32/10 No. 3 Police 0.3697 23 10 8/4 No. 3 Police 0.2809 24 11 44/7 No. 17 Police 0.447 25 12 44/19 No. 17 Police 0.0459 26 13 30/1 No. 3 Police 0.2517 27 14 29 No. 3 Police 5.3631 28 15 30 No. 3 Police 0.2293 29 1 3010/37 No. 2 Police 0.5418 30 2 3010/39 No. 2 Police 1.0954 31 3 3326 No. 2 Police 15.2294 32 4 3016/121 No. 2 Police 59.4842 33 5 3020/24 No. 2 Police 2.0072 34 6 3016/59 No. 2 Police 12.5367 35 7 3016/63 No. 2 Police 8.6531 36 8 3016/72 No. 2 Police 10.2109 37 9 3010/13 No. 2 Police 0.1618 38 10 3010/37 No. 2 Police 0.5418 39 11 3010/39 No. 2 Police 1.0954 40 12 3020/29 No. 2 Police 9.1203

41 13 3020/22 No. 2 Police 6.288 42 14 3020/2 No. 2 Police 2.7385 43 15 3262/2 No. 2 Police 15.7662 44 16 3007/16 No. 3 Police 117.7454 45 17 3027/1 No. 7 Police 0.4915 46 18 3027/2 No. 7 Police 0.7691 47 19 3027/3 No. 7 Police 2.9414 48 20 70/1 No. 7 Police 0.568 49 21 70/2 No. 7 Police 0.6151 50 22 70/3 No. 7 Police 0.1936 51 23 71/3 No. 7 Police 0.17 52 24 3014/1 No. 3 Police 13.4638 53 25 3014/2 No. 3 Police 0.2365 54 26 39/5 No. 7 Police 0.0532 55 27 39/6 No. 7 Police 0.2533 56 28 81/4 No. 7 Police 0.06 57 29 81/5 No. 7 Police 0.0176 58 30 81/6 No. 7 Police 0.0186 59 31 83/4 No. 7 Police 0.0724 60 32 83/5 No. 7 Police 0.0402 61 33 83/6 No. 7 Police 0.0416 62 34 69/3 No. 7 Police 1.377 63 35 69/4 No. 7 Police 0.0065 64 36 43/13 No. 7 Police 0.0585 65 37 43/14 No. 7 Police 0.0246 66 38 43/15 No. 7 Police 0.0288 67 39 310/19 No. 7 Police 0.0723 68 40 310/20 No. 7 Police 0.0277 69 41 310/22 No. 7 Police 2.2776 70 42 310/23 No. 7 Police 0.7806 71 43 43/16 No. 7 Police 0.0437 72 44 43/17 No. 7 Police 0.013 73 45 43/19 No. 7 Police 1.6562 74 46 43/20 No. 7 Police 0.4178 75 47 42/8 No. 7 Police 0.0685 76 48 42/9 No. 7 Police 0.0184 77 49 61/8 No. 7 Police 1.8215 78 50 61/9 No. 7 Police 0.5247 79 51 40/7 No. 7 Police 0.048 80 52 40/8 No. 7 Police 0.0158 81 53 39/7 No. 7 Police 1.1004 82 54 39/8 No. 7 Police 0.0555 83 55 60/5 No. 3 Police 0.0458 84 56 60/6 No. 3 Police 0.0171 85 57 37/17 No. 3 Police 0.0572 86 58 37/18 No. 3 Police 0.0214 87 59 37/20 No. 3 Police 0.0762

88 60 37/21 No. 3 Police 0.0224 89 61 57/13 No. 3 Police 1.4615 90 62 57/14 No. 3 Police 0.6094 91 63 37/23 No. 3 Police 0.5241 92 64 37/24 No. 3 Police 0.2638 93 65 24/19 No. 3 Police 0.0341 94 66 24/18 No. 3 Police 0.0854 95 67 60/6 No. 7 Police 0.0385 96 68 60/7 No. 7 Police 0.3401 97 69 32/12 No. 3 Police 0.3243 98 70 32/16 No. 3 Police 1.1888 99 71 3029/20 No. 3 Police 4.0057 100 72 3029/27 No. 3 Police 10.8558 101 73 3029/24 No. 3 Police 0.6178 102 1 3010/38 No. 2 Police 0.687 103 2 3323 No. 2 Police 13.102 104 3 293/5 Tatynia 0.99 105 4 330/4 Tatynia 0.19 106 5 667 Tatynia 5.0217 107 6 293/4 Tatynia 0.27 108 7 3010/34 No. 2 Police 0.9791 109 8 3010/35 No. 2 Police 0.1757 110 9 3309/6 No. 2 Police 2.1407 111 10 3309/3 No. 2 Police 0.511 112 11 3222/1 No. 2 Police 0.1523 113 12 3222/2 No. 2 Police 0.225 114 13 3223 No. 2 Police 0.2854 115 14 341/3 No. 2 Police 0.0419 116 15 3025/3 No. 2 Police 0.5109

The planned project includes the construction of a Propane DeHydrogenation (PDH) Unit along with a handling and storage terminal and technical infrastructure. The project consists of the following key components: 1. Onshore part (PDH Unit), 2. Offshore part (handling and storage terminal), 3. Pipe racks with transmission pipelines connecting the onshore and offshore parts of the unit. The onshore part of the PDH Unit will be located within the existing industrial plant of Grupa Azoty Zakłady Chemiczne “Police” S.A., while the offshore part at the Police Channel (West Oder) north of the existing Police Seaport. The pipe rack will be routed on the premises of the chemical plants and at a single spot it will cross the provincial road No. 114. The key elements of the project include: Onshore part: − production PDH unit with a capacity of 400,000 Mg/year – ISBL (Inside Battery Limits); − an auxiliary unit, which will consist primarily of propylene storage facility consisting of tanks, a propylene loading station, a new railway siding, a flare and a system to facilitate the operation of equipment and media transfer – OSBL (Outside Battery Limits);

− 110/10/6 kV GPVI power supply substation, − a system for pumping propane from the terminal to the production unit and propylene from the production unit to the terminal, about 4.5 km long. Offshore part: − a terminal for handling and storing liquid propane with a total usable capacity of 60,000 m3 and for distribution of propylene to vessels, including a sea (dolphin) harbor used for handling vessels with a load capacity exceeding 1,350 t and the auxiliary systems, in two options: Option A – Storage of propane and propylene in mounded bullets at approx. 5°C at a pressure of approx. 0.45 MPa Option B – Storage of propane in cryogenic tanks at 42°C and propylene in mounded bullets. Propane Dehydrogenation Unit (PDH) is intended for the production of propylene with a purity required for polymer production, i.e. 99.6% vol. of propylene. The technology of propylene production will be based on licensed processes: − OleflexTM process involving propane dehydrogenation licensed by UOP, − Huels process of selective hydrogenation (SHP under the license of UOP). The raw material for the production of propylene is propane. The main product of the process will be propylene (approx. 50 t/h; 400,000 t/year, of polymerization quality), while the by- product of the process will be hydrogen (approx. 2 t/h; 16,100 t/year). The unit operation time will be 8,000 hours per year. In addition to the Propane Dehydrogenation Unit (PDH), the production unit includes the following main auxiliary units (OSBL): fuel gas preparation, fresh/spent solvent system and closed sewage system, flare system, propylene storage and loading system, treatment system for river and fire water, cooling water system, boiler feed water and steam system, instrument air and nitrogen system, caustic soda system, and wastewater treatment system. The handling and storage terminal along with the planned unit will be used for: receiving propane from vessels, storing propane in the underground, mounded bullets with horizontal axis (Option A) and in the aboveground cryogenic tanks (Option B), receiving propylene from the PDH Unit to the mounded bullets and the dispatch of propylene to vessels. The planned terminal performance is as follows: Propane − deliveries: up to 526,000 t/year, − production demand (transmission to the PDH Unit): rated: 60 t/h, − capacity of the vessel unloading process to the aboveground tanks: minimum 2,000 m3/h, − storage tanks (net capacity): Option A Option B − Stage I: 45,000 m3 (~23,000 tons at − Stage I: 40,000 m3 (~23,000 tons at - 15°C) 42°C) − Stage II: 60,000 m3 (~30,500 tons at − Stage II: 60,000 m3 (~35,000 tons at - 15°C), target 42°C), target Propylene − drainage from the PDH Unit: rated: 50 t/h, − storage tanks (net capacity): 8,000 m3 (-4,100 tons at 15°C), − loading speed: 300 t/h at loading temperature of not exceeding -10°C.

The propane and propylene terminal consists of: 1. Propane and propylene handling stations for gas carriers unloading and loading consisting of: − a loading platform in the form of a reinforced concrete slab set on piles with installations and equipment for propane and propylene handling; − mooring and fender dolphins (4 pcs.) and mooring dolphins (6 pcs.), equipped with quick-release mooring hooks and fender equipment; − stations for fire monitors in the form of four land reinforced concrete foundations, based on piles, on which steel structures of fire monitors will be mounted; − communication platforms to the dolphins; − berth constituting the shore lining; − bottom reinforcement (underwater slope at the berth). 2. The onshore part of the terminal consisting of: − propane and propylene storage tanks with process systems and service platforms: • Option A – 7 mounded propane bullets, 2 propylene tanks in stage I, 3 additional propane tanks in stage II; • Option B – 1 propane tank with outer shell (full containment) in stage I • and in addition 1 tank in stage II, − process facilities: • pumping station (shelter), cooling tower and heat exchanger station (equipment based on a reinforced concrete slab), compressor plant (shelter), air and nitrogen compressor station (system container), boiler house, and flare; • process and transmission pipelines with a pipe rack; • liquid gas station operating building functionally connected with the terminal process facilities – in the building there will be hygienic and sanitary facilities, office, workshop and storage facilities, control room with a server room and other auxiliary rooms; • transformer station in a masonry building; • fire pump station in a masonry building; • distribution station (shelter) designed to direct water monitors to the gas carrier and the process units; • checkpoints in the form of systemic, glazed containers; • chromatograph container. 3. Communication system 4. Underground and above-ground networks: low-voltage and medium voltage cable networks, control network, telecommunication network, water supply, heat pipeline, rainwater drainage system, gravity sanitary sewerage network, discharge sanitary sewerage network (sanitary sewage from the area will be discharged to the existing sewage pumping station within the Port), hydrant water pipeline, and sprinkler water pipeline. 5. Site fencing The scope of works assumed for the implementation of the planned project includes: − demolition and preparatory works, including: dismantling of the old unit remains, demolition of the existing foundations and dismantling of the infrastructure in the onshore part of the project; − felling of the remaining trees and shrubs; − earth works; − construction of facilities and installation of equipment for the onshore part of the project (production unit – ISBL and auxiliary unit – OSBL); − construction of pipelines for pumping raw material (propane) from the terminal to the production unit (ISBL) and of the product (propylene) from the auxiliary unit; − hydro-technical structures construction of the handling station with the units and equipment, i.e.: pile driving and anchor works execution (including, among others, driving

of sheet piling, anchors and piles), the handling station superstructure execution, the handling station necessary units and equipment execution; − dredging (extraction) works and execution of the underwater slope reinforcement; − construction of the storage part of the terminal, i.e.: enclosed structures, storage tanks for propane and propylene, plants and systems for the transmission of propane and propylene, electrical, telecommunications, water and sewage (including fire pump stations), road surfaces, greenery, and fencing. Pile drivers, vibro hammers, dredgers, tugs, barges and transport cars, bulldozers, excavators, cranes, concrete mixers, welding units, soil compaction devices are planned, among others, to be used to execute the above-mentioned investment projects. During the investment execution phase, facilities and areas for construction site back-up facilities will be built, such as office and social facilities, workshop and storage facilities, storage and assembly yards, access roads, temporary tanks for waste collection, temporary storage facilities of earth masses, etc. Earth masses from excavations and leveling works will be used on the construction site or transferred for outdoor use. In the event of their contamination, they will be transferred for disposal by the authorized companies. REGIONAL DIRECTOR FOR ENVIRONMENTAL REGIONAL DIRECTOR FOR PROTECTION in Szczecin ENVIRONMENTAL PROTECTION IN SZCZECIN Radosław Grzegorczyk

09/08/2017