La participació en activitats fora de l’horari escolar

The threat of serious failure at the Grupa LOTOS refinery lies in the handling and processing of hazardous substances

on the refinery's premises. Accordingly, the Company is subject to legal regulations which are very specific as to what type of activities a plant has to carry out to provide an effective safety system and what steps must be taken to prevent serious failures. Grupa LOTOS has implemented a safety system guaranteeing safety for humans and the environment. The system includes:

Definition, at each organization level, of the duties of employees responsible for the implementation of emergency procedures and their training;

Mechanisms for systematic identification of failure risks or the likelihood of their occurrence;

Manuals for safe operation under standard conditions, temporary production breaks, or for monitoring of the plant in a manner allowing for corrective actions in case of any incidents deviating from standard procedures;

Monitoring of the operation of units where hazardous substances are stored or processed, which enables corrective measures to be taken upon the occurrence of irregularities in unit operation;

Systematic analysis of expected emergencies with a view to developing appropriate rescue operation plans. This system is one element of the comprehensive plant management system. Grupa LOTOS has also implemented a certified Integrated Management System, including emergency response procedures, procedures for occupational safety and health monitoring, as well as procedures for prevention of emergencies, preparation for possible emergencies and accidents at work.

During the implementation of the comprehensive plant management system, in November 2011 the Company, the Chief Inspector for Environmental Protection, the State Labour Inspection Authority and the Head of the National Fire Service all signed a declaration on an agreement to improve occupational safety, fire protection and environmental protection in the oil and gas industry. Being a representative of the refining industry, the Company has undertaken preventive steps and measures to maintain risk exposures at its plants at or below acceptable levels, so as to minimise the possibility of serious failures. Such initiatives are designed to improve occupational safety, fire protection and environmental

protection.

All its existing security systems render the Company well prepared to fight industrial failures. The possibility of the

occurrence of such failures has been analysed and necessary preventive measures have been taken, while the solutions designed into units handling hazardous substances guarantee human and environmental safety.

In 2012, Grupa LOTOS recorded three Tier 2 process safety threats, none of which adversely affected the natural environment.

LOTOS Asfalt has taken steps to fully eliminate or at least minimise potential hazards to the natural environment and

human safety. The safety assessment of bitumen products covers the entire process, from the design phase to selection of raw materials, production process optimisation and selection of binders for the final product. By participating in industrial conferences, the company gains access to the most recent research papers discussing those features of bitumen which affect human health and the environment. The knowledge thus gathered includes both risk assessment for exposure to noxious conditions and best practices minimising the adverse effect.

With bitumen products, one question not yet unequivocally answered is the noxiousness of bitumen fumes emitted when bitumen is used in high temperatures. Although there is no scientific evidence stating that bitumen fumes are harmful, and despite petroleum bitumens not being listed as hazardous substances under current regulations, LOTOS Asfalt includes the most recent recommendations on safe handling of bitumen products in its Information Sheets for substances or admixtures for which a Safety Data Sheet is not required.

Paving grade bitumens, which account for more than 95% of the company’s production volume, are subject to conformity assessment, whose outcome represents a warranty for the customer that the product has the appropriate functional properties and meets construction industry requirements. LOTOS Asfalt’s products all carry declarations of conformity with technical specifications. There are procedures in place at the company which seek to ensure that any amendments to legal requirements affecting the company’s operations are identified. To this end, the company has extended the range of its relevant safety-enhancing activities to include transport and distribution. Safety rules and instructional videos are in place for bitumen loading, haulage and unloading. Providers of transport services are also assessed for compliance with LOTOS Asfalt’s safety standards.

Life cycle stages at which the impact of LOTOS Asfalt’s products on health and safety is improved

Yes No

Concept of product development x -

Manufacturing and production x -

Marketing and promotion x -

Stocks distribution and supply x -

Use and service x -

Disposal, reuse or recycling - x

In the reporting period, LOTOS Asfalt recorded no incidents of non-compliance with the regulations and voluntary procedures concerning the health and safety impact of the company’s products at any stage of their products' life cycles.

In 2012, there were two occurrences of Tier 2 process safety threats. However, they did not pose direct, significant threats to human health or life, the environment or the company's assets. This attests to the high process safety culture in the organization, which emphasises the identification of potential safety threats, training of employees responsible for process control, as well as implementation of best engineering practices by including them in job and process manuals. Identified threats are examined on a case-by-case basis by the Accident Committee appointed to thoroughly explain the causes and circumstances of any accident or failure, as well as to recommend preventive measures increasing safety and minimising the risk or recurrence.

LOTOS Kolej, being a railway carrier, specialises in transport of dangerous goods and provides comprehensive rail

transport services all over the country. It also provides comprehensive rail transport services to Grupa LOTOS, LOTOS Jasło and LOTOS Czechowice. The company transports dangerous goods in compliance with the provisions of the Rail Transport Act, the Act on Transport of Dangerous Goods by Rail and other regulations pertaining to transport of

dangerous goods.

Source: In-house analysis based on data from the Railway Transport Authority (Urząd Transportu Kolejowego).

Volume of transported goods including dangerous goods (million tonnes)

8.5

10.5 10.6

Volume of dangerous goods subject to RID Total volume of goods

2010 2011 2012

0.0 5.0 10.0 15.0

In 2012, there were 13 accidents (compared with 15 in 2011) and 5 incidents (compared with 8 in the previous year) involving LOTOS Kolej’s employees and rolling stock (according to the classification provided for in the Regulation of the Minister of Transport, dated April 30th 2007). As in 2011, one accident occurred by fault of the company’s employee. The reason for the accident was identified as the inclusion of a non-operational car in a train set. The company was not responsible for the other accidents and incidents. The decrease in the number of recorded accidents and incidents confirms the effectiveness of the company’s steady efforts to improve the safety and quality of services provided. LOTOS Kolej puts enormous emphasis on the process safety and occupational safety of its employees. In its operations, the company strives to minimise identified threats by introducing various safety controls and monitoring. Given the company’s business profile, the largest threats are connected with railway traffic.

Owing to the preventive measures taken, in 2010-2012, LOTOS Kolej recorded only one process safety threat, classified as a Tier 1 threat. In order to minimise the adverse effects of the incident, safety procedures and additional safety measures were implemented.

All products manufactured by LOTOS Oil have Safety Data Sheets (SDS), drafted based on the applicable legal

requirements. The product description in an SDS advises users of potential hazards that the product may generate with respect to human health and the natural environment. In addition, SDSs contains information on dangerous ingredients in the product, exposure controls/personal protection, fire-fighting and environmental release measures, as well as empty container handling procedures.

Life cycle stages at which the impact of LOTOS Oil’s products on health and safety is improved Yes

Concept of product development x

Research and development x

Certification x

Manufacturing and production x

Marketing and promotion x

Stocks distribution and supply x

Use and service x

Disposal, reuse or recycling x

Products are supplied to customers along with relevant quality certificates. If a product is classified as dangerous, the relevant SDS is enclosed with the documents submitted with the initial delivery of the product. Otherwise, the customer is provided with SDSs on demand.

In the reporting period, LOTOS Oil recorded no incidents of non-compliance with applicable regulations, rules and codes concerning the health and safety impact of the company’s products and services.

To maintain an appropriate level of process safety, LOTOS Oil develops inspection timetables for key equipment, supporting prevention of accidental emission of substances, including non-toxic and non-flammable materials. The company keeps records of events which might potentially affect process safety. In this way, it monitors the progress of the elimination of identified threats. Another driver of process safety improvement is the implementation, in the

company’s production departments, of a system for maintenance of well-organised, clean, high-performance and high- quality work spaces. In 2012, LOTOS Oil registered no Tier 1 process safety threats, and monitoring revealed eight Tier 2 process safety threats in 2012. Their identification made it possible to take early safety measures and prevent their transformation into Tier 1 threats.

LOTOS Paliwa markets ready fuels meeting quality requirements provided for in industrial standards and legal

regulations. To ensure compliance, LOTOS Paliwa regularly monitors fuels sold through the own and partner station chain in terms of their conformity with relevant requirements. At each station of the LOTOS chain, all fuels are inspected on an annual basis.

Grupa LOTOS assesses the impact of its fuels on health and safety during fuel production. For each fuel type, the supplier prepares an SDS (for dangerous substances), including information on threats connected with the use of the fuels and required precautions. An SDS is delivered directly to each wholesaler and is available to retail customers at the LOTOS stations. Given the fact that the company uses road or railway transport to supply fuels to its customers, internal procedures were developed to ensure safety and limit the adverse effect on human health of fuels in transit.

As regards fuel sales from own stations, LOTOS Paliwa sets the standards, and supervises adherence to those

standards by the station managers. The process is governed by separate agreements and effective working procedures, which are improved on a continuous basis. In 2012, there were no reports submitted by station managers about the products being sold having any adverse effects on their employees’ health.

Given their nature, service stations are retail facilities exposed to the risk of aggressive behaviour by persons who are not customers. This kind of behaviour may pose a threat to the physical safety of the station’s employees. In 2012, two such instances were recorded. The company has been taking a number of various technical, organizational and HR measures with a view to preventing such occurrences in the future.

LOTOS Paliwa sets the standards, and supervises adherence to those standards by service station managers. Based on monitoring data and sales process safety assessments, existing procedures are improved and new procedures

implemented, as are corrective and preventive measures designed to mitigate the risk of threats and limit their effects on service stations.

In 2012, LOTOS Paliwa recorded no Tier 1 process safety threats. Eight Tier 2 process safety threats were recorded. In each instance, the employees responded properly, following the applicable procedures. The relevant emergency services were alerted in order to remedy the threat and secure the premises. Affected station managers analyse each dangerous incident and reports it to LOTOS Paliwa’s OSH team, where the incident is again analysed for the possibility of a recurrence and the formulation of preventative measures.

At LOTOS Petrobaltic, each reported dangerous incident, failure or environment-affecting activity is thoroughly analysed

in order to identify and implement preventive measures. Among the dangerous incidents and technological failures reported in 2012, the company identified one Tier 1 process safety threat. The other companies of the LOTOS Petrobaltic Group recorded no such threats in 2012. The company takes steps designed to record and classify events affecting process safety in accordance with the most recent standard covering such events: Standard API RP 754.