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Home , Waste minimisation

Management Standard Rev 05

APPENDIX 7 Minimization of waste generation and disposal and process optimization

Purpose To minimize generation and optimize waste management process. Effective Minimisation of and their maximum utilization (waste use for of goods (products), performance of work, rendering of services, and generation of energy) can bring benefits by:  reducing Life cycle environmental impact,  reducing raw material purchase costs and raw material/product losses,  reducing Workplace risk,  reducing incident number and personnel exposure,  reducing waste management related administrative load, compliance costs, risk of compliance violations and environmental liabilities  improving Production efficiency,  improving Environmental performance,  improving Product quality,  increasing Profits,  improving Creditability and reputation.

Who is this for?

 Asset/Site Managers;  Asset/Site HSE Professionals;  Asset/Site personnel responsible for waste management  Contract Holders;  Companies (contractors) responsible for collection, transportation, , and disposal of waste under contracts.

Requirements Asset/Site Managers are Accountable for the following requirements: 1. Establish and Comply with Key Performance Indicators (KPI) for the Asset/Site for waste management and minimization of waste generation and disposal. KPI are set annually.

2. Minimise waste generation and disposal, to the extent reasonably practicable by: a. Selecting lower-risk alternative raw materials that generate lower Hazard Class Waste, such as low or biodegradable materials that minimize residual impact if released into the environment.  Procure materials in bulk. Procure materials in returnable containers. Otherwise procure materials in returnable packaging, and encourage suppliers to Minimise Delivery of materials without container. Delivery of materials in container, suitable for repeated use b. Decontaminating hazardous material/chemical containers, where feasible, by full drainage and rinsing (if this is stipulated by the approved technological process or operating procedure) prior such containers are considered as empty. c. Including requirements for waste generation minimisation and optimization of waste management process in Waste Instructions which shall be developed for each type of waste (links to Instructions are provided in the Company’s Waste Register in LiveLink).

3. As far as practicable, packaging-related Wastes shall be minimised by selecting materials storage containers to:

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Waste Management Standard Rev 05

a. maximise the use of bulk container deliveries and distribution via refillable containers, b. maximise the use of containers for hazardous materials that are returnable to the material producer, c. ensure that hazardous materials containers are suitable for decontamination and ; if necessary a waste management professional must request the responsible department of Sakhalin Energy (currently logistics department) to flush (deactivate) oily waste containers; d. utilize container and packaging materials that are readily recyclable or suitable for re-use; e. minimise use of multi-material containers.

4. Segregate at source and avoid mixing different types of Waste to the extent reasonably practicable. In accordance with RF legal requirements (Appendix 2), collection of wastes and segregation shall be conducted by Waste type, Hazard Class, and other applicable characteristics to facilitate waste use in the process cycle (for manufacturing of goods (products), performance of work, rendering of services, and for generation of energy):. a. Do not mix chemically or physically incompatible Wastes. b. Do not mix Wastes of Hazard Classes 1-3. c. If Wastes of different Hazard Classes are inadvertently or unavoidably mixed, the resultant mixture shall carry the more restrictive classification. d. Segregate all recyclable Waste at source.

5. Optimise waste disposal and accumulation (temporary storage) in accordance with regulatory requirements and Appendix 8 hereof, ensure delivery of waste to Company-approved and licensed contractors for further disposal. Use and disposal of Hazard Class III oily Wastes shall be provided as follows:  Used lube oils free of halogens shall be blended with crude in the controlled manner (approved by Commercial Department), or sent for heat recovery via co-combustion at the approved facility, which is compliant with normative requirements.  Solid oily waste shall be deactivated by at special plants Wastes of Hazard Class I-III which cannot be decontaminated or re-used shall be disposed at licensed Waste Disposal facilities designed in accordance with RF regulations. Wastes of Hazard Class I-III shall not be disposed of on the territory of the Sakhalin Island. Any off-island disposal would be to appropriate (licensed for disposal of Class I-III) Waste Disposal Facilities only in RF territory.  In case of Oil Spills the Company will utilize OWHA.

6. Re-injection of drilling wastes in platforms injection wells. During drilling in operations phase, disposal of used drilling cuttings, muds, completion and workover fluids shall be performed by reinjecting at special underground facilities (CRI).  Incineration of Waste at the plants meeting EU and RF requirements: Sakhalin Energy shall assess the environmental characteristics of incinerators to meet Russian and International standards. Sakhalin Energy or its Contractor (whichever is the operator) must demonstrate that incinerators are compliant with appropriate EU directives (EC Directive on Incineration of Waste 2000/76/EC), except in those instances where small capacity batch incinerators with a capacity of < 25kg per hour are required for the incineration of selected waste which cannot otherwise be processed on Sakhalin due to the absence of appropriate facilities..  Offshore incinerators are exempted from EC regulation and are subject to MARPOL requirements.

7. Sludge. a. Sludge from any asset plants (STP) shall be collected and dewatered to reduce the volume. The solids shall be dewatered or treated at sludge drying beds at local STP facilities, and subsequently disposed at Company-approved . Sewage sludge from Zima residential facilities is supplied for deactivation to the municipal wastewater treatment plants. b. Bioreactors shall be monitored in accordance with their operating instructions.

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c. No solid waste shall be disposed of overboard, except food wastes as defined in the Offshore Aqueous Discharges Specification.

8. Medical Wastes [EIA-Addendum on SWM] Where applicable, Medical Waste is collected and disposed by Contractor in accordance with the medical waste procedure approved by the Sakhalin Energy Company Health Manager (Medical Conditions of Contract Specification), in compliance with Sakhalin Energy Medical Conditions of Contract, RF legal requirements, and WHO Guidelines (1999 Safe Management of Wastes from Health-care Activities).

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