3.

KEY PRINCIPLES
DamageSeverity Moderate Serious Major Catastrophic Disastrous
Onsite:Permanenteffects Onsite:onefatalityand/or Onsite:severalfatalities(25)
OnSite:NoPermanenteffect Onsite:Manyfatalities(>5)
External:Nonpermanent severaldisabilities External:Onefatality,many
External:NoEffect External:severalfatalities(>2)
effects External:Permanenteffects physicalinjuries
OnSite:
OnSite:
OnSite: 100499personsinLC1zone
Human: >499personsinLC1zone
<100personsinLC1zone 500999personsinSEIzone
Physicalinjury >999personsinSEIzone
OnSite: <500personsinSEIzone External:
(onsiteorexternal) External:
<100personsinSEIzone External: 1099personsinLC1zone
On site: 1 person in SEI zone
Onsite:1personinSEIzone >99 persons in LC1 zone
>99personsinLC1zone
External: <10personsinLC1zone 500999personsinSEIzone
>999personsinSEIzone
<10personsinSEIzone <100personsinSEIzone OnSite+External:
OnSite+External:
OnSite+External: <500personsinLC1zone(max
>500personsinLC1zone
<500personsinSEIzone 100external)
>1000personsinSEIzone
<1000personsinSEIzone
PollutionIntensitylevel:Spill Pollutionintensitylevel:
Pollutionintensitylevel: Pollutionintensitylevel:
orreleaseofpollutant Pollutionintensitylevel: Importantpollutionwith
Significantpollutionexternal Majorandsustainedpollution
requiringanotificationto Moderatespillwithinsite reversibleenvironmental
tothesite,evacuationof externaltothesiteand/or
authorities,butwithout limits consequencesexternaltothe
Environment(Pollution) persons extensivelossofaquaticlife
environmentalconsequences site
Intensityexpressedasoilspill Intensityexpressedasoilspill Intensityexpressedasoilspill Intensityexpressedasoilspill Intensityexpressedasoilspill
volumeinopenseaor volumeinopenseaor volumeinopenseaor volumeinopenseaor volumeinopenseaor
onshore:<0.1bbl onshore:0.110bbls onshore:10200bbls onshore:2002000bbls onshore:>2000bbls
Asset/Material <200K 200K2M 2M10M 10M100M >100M
Lossoflessthan1dayof Lossbetween1and5daysof
Lossbetween500boeand Lossgreaterthan5daysof
ProductionFinancial Noproductionlossorloss< affiliateaverageproduction affiliateaverageproduction
10000boeorbetween20K affiliateaverageproduction
Impact 500boeor<20K (boe)orbetween200Kand (boe)orbetween2Mand
and200K (boe)or10M
2M 10M
FrequencyRange 1 2 3 4 5
DamageFrequency DefinitionforQualitative Level
(occurrence/year) CONSEQUENCE

5 10 15 20 25
couldoccurseveraltimes 2
Likely >10 5 Level2Risk Level2Risk Level1Risk Level1Risk Level1Risk
overplantlifetime
(TolerableifALARP) (TolerableifALARP) (FirstPriority) (FirstPriority) (FirstPriority)

Couldoccuronceforevery 4 8 12 16 20
Unlikely 1020similarplantsover20 102203 4 Level3Risk Level2Risk Level2Risk Level1Risk Level1Risk
30yearsofplantlifetime (Acceptable) (TolerableifALARP) (TolerableifALARP) (FirstPriority) (FirstPriority)
FREQUENCY/LIKELIHOOD

Onetimeperyearforat
least1000units.Onetime
forevery100200similar
3 6 9 12 15
plantsintheworldover20 3 4
VeryUnlikely 10 10 3 Level3Risk Level2Risk Level2Risk Level2Risk Level1Risk
30yearsofplantlifetime.
(Acceptable) (TolerableifALARP) (TolerableifALARP) (TolerableifALARP) (FirstPriority)
Hasalreadyoccurredinthe
COMPANYbutcorrective
actionhasbeentaken.

Hasalreadyoccurredinthe 2 4 6 8 10
4 5
ExtremelyUnlikely industrybutcorrective 10 10 2 Level3Risk Level3Risk Level2Risk Level2Risk Level2Risk
actionhasbeentaken (Acceptable) (Acceptable) (TolerableifALARP) (TolerableifALARP) (TolerableifALARP)

Eventphysicallypossible
buthasneverorseldom
occurredoveraperiodof20 1 2 3 4 5
5
Remote 30 years for a large amount <10
30yearsforalargeamount < 10 1 Level 3 Risk
Level3Risk Level 3 Risk
Level3Risk Level 3 Risk
Level3Risk Level 3 Risk
Level3Risk Level 2 Risk
Level2Risk
ofsites(>fewthousand; (Acceptable) (Acceptable) (Acceptable) (Acceptable) (TolerableifALARP)
e.g.wagons,process
drums)
3. KEY PRINCIPLES

5 4 3 2 1
Likely Unlikely VeryUnlikely ExtremelyUnlikely Remote
Onetimeperyearfor
One time per year for
atleast1000units. Eventphysically
Onetimeforevery possiblebuthasnever
100200similarplants orseldomoccurred
Couldoccuroncefor Hasalreadyoccurred
couldoccurseveral
could occur several in the world over 20
intheworldover20 over a period of 2030
overaperiodof20 30
every1020similar intheindustrybut
timesoverplant 30yearsofplant yearsforalarge
plantsover2030 correctiveactionhas
lifetime lifetime.Hasalready amountofsites(>few
yearsofplantlifetime beentaken
occurredinthe thousand;e.g.
COMPANY but
COMPANYbut wagons, process
wagons,process
correctiveactionhas drums)
beentaken.
>102 102 203 103 104 104 105 <105
 3. KEY PRINCIPLES
DamageSeverity Moderate Serious Major Catastrophic Disastrous
OnSite:NoPermanent Onsite:Permanent Onsite:onefatality Onsite:severalfatalities Onsite:Manyfatalities
effect effects and/orseveraldisabilities (25) (>5)
External:NoEffect External:Non External:Permanent External:Onefatality, External:severalfatalities
permanenteffects effects manyphysicalinjuries (>2)
Onsite:1personinSEI OnSite: OnSite: OnSite: OnSite:
zone <100personsinSEI <100personsinLC1zone 100499personsinLC1 >499personsinLC1zone
zone <500personsinSEIzone zone >999personsinSEIzone
Human:
External: External: 500999personsinSEI External:
Physicalinjury
<10personsinSEI <10personsinLC1zone zone >99personsinLC1zone
((onsiteor
zone <100personsinSEIzone
100 i SEI E t
External:l >999personsinSEIzone
999 i SEI
external)
OnSite +External: 1099personsinLC1zone OnSite +External:
<500personsinSEIzone 500999personsinSEI >500personsinLC1zone
zone >1000personsinSEIzone
OnSite +External:
<500 persons in LC1 zone
<500personsinLC1zone
(max100external)
<1000personsinSEIzone
PollutionIntensitylevel: Pollutionintensity Pollutionintensitylevel: Pollutionintensitylevel: Pollutionintensitylevel:
Spillorreleaseof level: Significantpollution Importantpollutionwith Majorandsustained
pollutant requiring a
pollutantrequiringa Moderate spill within
Moderatespillwithin external to the site
externaltothesite, reversible environmental
reversibleenvironmental pollution external to the
pollutionexternaltothe
notificationto sitelimits evacuationofpersons consequencesexternalto siteand/orextensiveloss
authorities,butwithout thesite ofaquaticlife
Environment
environmental
(Pollution)
consequences
Intensity expressed as oil
Intensityexpressedasoil
Intensityexpressedas
Intensity expressed as Intensityexpressedasoil
Intensity expressed as oil Intensity
Intensityexpressedasoil
expressed as oil Intensityexpressedasoil
Intensity expressed as oil
spillvolumeinopensea
oilspillvolumeinopen spillvolumeinopensea spillvolumeinopensea spillvolumeinopenseaor
oronshore:<0.1bbl seaoronshore:0.1 oronshore:10200bbls oronshore:200 2000 onshore:>2000bbls
10bbls bbls
Asset/Material <200K 200K 2M 2M 10M 10M 100M >100M
No production loss or
Noproductionlossor Loss between 500 boe
Lossbetween500boe Loss of less than 1 day of Lossbetween1and5
Lossoflessthan1dayof Loss between 1 and 5 Loss greater than 5 days of
Lossgreaterthan5daysof
Production loss<500boe or< 20K and10000boeor affiliateaverage daysofaffiliateaverage affiliateaverage
FinancialImpact between20Kand production(boe)or production(boe)or production(boe)or10M
200K between200Kand2M between2Mand10M