Agreed by Ministry of Energy of the ROK, Committee of Environmental regulation, control and state inspection in Oilg and Gas complex, Atyrau oblast Environmental Department Endorsed by LLP Tengizchevroil ____________________ Agreed by ROK Ministry of Energy ____________________ ____, ___________ 2015 ____, ___________ 2015 _______________________ TCO Environmental Protection Plan for 2016-18 ## 1 2 3 Title of nature-conservative measures KTL Unit 300 Upgrade Project Project description Time of performa nce Form of completion (Milestones) 2016 2017 2018 The purpose of this project is to proactively replace the SGP South Hydrocarbon Drain (DHC) header line which has experienced corrosion damage in recent years. The DHC is designed as a closed system to prevent the release of hydrocarbon liquids and vapors to the atmosphere. 2016 2017 2018 Replacement of the SGP South DHC header line. Sour Gas Flaring Reduction Study The purpose of this project is to reduce potential upset SO2 (sulfur dioxide) emissions through evaluation of automation alternatives. 2016 2017 2018 Phase 2-3 gate decision support package. Engineering of preferred alternative. 728,274 167,445 Total for "Air Protection" 4 Water Recycling Facility Upgrade The purpose of this project is to treat sanitary wastewater effluent from the Water (WRF) Project Treatment Facility (WTF) to technical water quality standards and further reuse within TCO Operations. TCO is currently working on the Ultrafiltration (UF) pretreatment system for the wastewater which will be installed and commissioned in 2016. 6 Wastewater System Monitoring Improvement The purpose of this project is to evaluate monitoring improvement alternatives for wastewater systems to ensure robust wastewater monitoring, improve process and source control practices/objectives through defensible flow, sample collection and measurement and improved data management practices. Alternative Water Sourcing Study The purpose of this study is to continue evaluation of technically feasible alternate water supplies that would enable TCO to further reduce its fresh water consumption and draw from the Volga (Kigach) river. To include: Caspian Sea, ground water, additional recycling to water recycling facility. Waste Recycling Program The purpose of this program is to evaluate additional recycling opportunities to further reduce the amount of waste disposed into the landfill. Continue developing recycling culture in TCO and its contractors. 2016 2017 2018 Site Reclamation Reclamation of disturbed lands 167,445 223,260 111,630 1,118,979 2,377,272 1,107,370 223,260 2016 2017 2016 2017 2018 2016 2017 2018 0 0 Installation of monitoring equipment. 111,630 0 Work on alternatives analysis and identify preferred alternative. 334,890 0 0 1,116,300 111,630 0 $9,377 $9,377 $9,377 9,377 9,377 9,377 Land Conservation Disturbed lands reclamation in TCO area Note: Forward looking project forecasts are subject to annual partner budget approval process and further engineering refinements and are subject to change. Environmental effect (expected results) Current State: Under the current plant design, a series of low-probability events could potentially result in release of acid gas or sour gas to atmosphere from KTL T-301 tank vent. Measures to be taken: Modify process scheme to remove tank T-301 from the main Unit 300 circulation loop. End result: In the event of a power outage or other process upset this modification will reduce risk of acid gas or sour gas release from tank T-301. Current State: The existing SGP South DHC header line has experienced corrosion and has been repaired as a short-term measure. Measures to be taken: The SGP South DHC header line will be replaced. End result: Reduce potential for environmental impacts from loss of containment from the SGP South DHC system and ensure safe and reliable operation. Measures to be taken: Evaluate alternatives to reduce potential upset SO2 emissions End result: Implement the preferred alternative to reduce sour gas flaring. Current State: The WRF has been constructed as per initial Basis of Design. Further evaluation of WTF effluent characteristics identified need for additional filtration. Pilot UF system installed and operated over several months determined that an UF unit with sand bed filters was necessary for operation. Measures to be taken: Project team is currently working on the UF system design, procurement, installation, and commissioning to be completed in 2016. End result: WRF will provide technical quality water from recycled sanitary wastewater. UF system is required to be commissioned prior to operation of WRF plant. Current State: The existing wastewater monitoring system is mostly manually operated. Measures to be taken: Installation of measuring equipment (flow meters, auto samplers, analyzers) to automate existing system. End result: Improved data collection capability, including sampling and measuring, improving data management practices for wastewater discharges. End result: Identification of technically feasible water supply alternatives for TCO Waste management Increased recycling waste Total for "Waste management" 8 502,335 828,295 Conservation & Rational Use of Water Resources 2016 Installation of the UF system and commissioning of WRF Total for "Conservation & Rational Use of Water Resources" 7 1,651,677 223,260 558,150 5 2018 (forecast) Air Protection Bypass the tank T-301 tank by installing additional valves and re-routing of Unit 300 process piping. The purpose of this project is to reduce the risk of acid gas or sour gas release to atmosphere in the event of a power outage or other process upset. The proposed modification would effectively remove tank T-301 from the main Unit 300 amine circulation loop resulting in risk reduction. Under current plant design, a series of lowprobability events could potentially result in release of acid gas or sour gas from the atmospheric amine surge tank (T-301). SGP Hydrocarbon Drain line replacement 2016 (plan) Expenses (thous. KZT) 2017 (forecast) 92,988 92,988 92,988 Current State: Currently TCO recycles more than 40% of its generated waste. Measures to be taken: Evaluate and assess additional waste recycling opportunities. Increase recycing waste volume and identify and develop capable Kazakh Content recyclers. End result: Increase recycing waste and diversion rate. Promoted recycling culture among TCO and contractor employees.Support development and growth of Kazakh Content recyclers. Current State: TCO has disturbed lands that are subject to reclamation. Measures to be taken: Development/implementation of reclamation projects, and return of reclaimed lands. End result: Preserve soil and vegetation. Ecosystem restoration. Rev 1.0 6-12-2012 Page 1 of 2 TCO Environmental Protection Plan for 2016-18 8 ## Title of nature-conservative measures Evaporation Ponds Reсlamation Project Project description The purpose of this project is to implement technically feasible and environmentally appropriate alternatives to reclaim the lands at the discontinued evaporation ponds. Time of performa nce 2016 2017 2018 Form of completion (Milestones) Phase 2-3 gate change decision support package report. Engineering of preferred alternative Total for "Land Conservation" 9 Landscaping The purpose of this project is landscaping and watering of green plants of TCO facilities 2016 2017 2018 Conservation of Flora & Fauna Maintenance of existing green area at TCO facilities Total for "Conservation of Flora & Fauna" 10 Energy Efficiency Study 11 Sulfur Test Pads Monitoring Program The purpose of the study is to use the Energy Audit results to identify main sources of TCO energy consumption and evaluate energy optimization opportunities. Increase awareness of rational use of energy resources. 2016 2017 The purpose of this program is to conduct research to measure and test various covered sulfur storage materials. 2016 2017 Environmental Education and Staff Training/ Public Relations Conduct and participate in training workshops, environmental awareness actions 2016 2017 2018 2018 (forecast) 223,260 223,260 223,260 316,248 316,248 316,248 9,377 9,377 9,377 9,377 9,377 9,377 Research, Design & Survey Works Study recommendations to reduce energy use in TCO facilities. Current State: TCO has identified discontinued evaporation ponds Measures to be taken: Evaluate technically feasible and environmentally appropriate alternatives to reclaim the lands at the evaporation ponds. End results: Ecosystem restoration. Current State: TCO completed landscaping activities of green plants at TCO facilities. Measures to be taken: Conduct care activities of existing green areas in TCO facilities. End result: Maintain area and number of trees and plants. Support biodiversity. $9,377 $9,377 $9,377 22,326 33,489 0 Measures to be taken: Conduct research to measure and test various covered sulfur storage materials. End result: Understanding of the merits of various covering materials. 31,703 42,866 9,377 Environmental Awareness & Advocacy Realization according to Environmental information and Awareness Plan Total for "Environmental Awareness & Advocacy" Environmental effect (expected results) Current State: TCO is required per legislation to conduct energy efficiency audit. Measures to be taken: Evaluate energy optimization opportunities at TCO Facilities. End result: Analysis of recommendations to reduce energy consumption at TCO Facilities. Improved awareness of rational use of energy resources. Annual reports Total for "Research, Design & Survey Works" 12 2016 (plan) Expenses (thous. KZT) 2017 (forecast) 7,256 7,256 7,256 7,256 7,256 7,256 Current State: Ongoing maintenance of organizational capabilities. Measures to be taken: Paricipation in trainings, workshops, environmental awareness actions and environmental forums. End result: Increase TCO employees level of environmental knowledge and awareness. Additional Environmental Projects 13 Geo-Dynamic Monitoring Geo-Dynamic Monitoring of Tengiz and Korolev oilfields. 2016 2017 2018 Ongoing reports submitted to ZKN semiannually 84,281 Total for "Additional Environmental Projects" Grand-Total thous. Note: Forward looking project forecasts are subject to annual partner budget approval process and further engineering refinements and are subject to change. 84,281 84,281 84,281 84,281 84,281 2,693,520 2,958,307 1,543,285 Current State: Regulatory requirement for subsoil users to perform Geomonitoring activity. Measures to be taken: Continue ongoing Geomonitoring program. Adjust the scope of work based on Regulatory recommendations. End result: To understand the impact of oil production to the subsurface environment to ensure geodynamic processes within safe ranges. Rev 1.0 6-12-2012 Page 2 of 2
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