ANNUAL REPORT OF âTRANSGAZâ MANAGEMENT INDIVIDUAL ...

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SNTGN “TRANSGAZ” SA Medias Annual Management Report for 2007 The relations between the company’s manager and employees are in line with the legal provisions in effect. No conflicts occurred therein during 2007. 1.1.6. Assessment on the environmental impact of Transgaz’ main activity The implementation of an Environmental Management System (EMS) in Transgaz, based on the requirements of the International Standard ISO 14001/2005 and certified by the Romanian Quality Insurance Company in 2006, provided the organizational framework necessary for rendering practical the company’s environmental management policy. Such certification was internationally acknowledged by Deed RO-0529 issued by The International Certification Network. Transgaz gained certification ISO 14001 for all its activities and sites and is ranged among the great Romanian companies reaching such essential goal. During the 1 st and 2 nd supervisory audits performed by SRAC, the environmental management system was re-certified according to Standard 14001/2005. The external audits proved the EMS to operate in compliance with ISO 14001 and to continuously improve its operation. In 2007, Transgaz re-updated its environmental policy statement and made it known to all its personnel, to the public and to other interested parties. The objectives of the environmental policy aim at maintaining an efficient environmental management system in compliance with the legal and regulatory requirements, at preventing pollution and reducing waste and resource consumption. Such environmental objectives are mainly focused on obtaining environmental permits or re-updating thereof, obtaining Water Management licenses for crossings and undercrossings, ranging sound emissions within acceptable limits, improving gas odoration systems, efficiency and control of such odoration process, reducing air and earth pollution by ethyl-mercaptane, monitoring pollution sources, assessing site environmental issues and reducing methane emissions. Reaching the above-mentioned objectives depends upon practical actions provided in annual environmental management programmes. 1.1.6.1. Synthetic presentation on the environmental impact of Transgaz’ main activity The National Gas Transmission System consists of pipelines together with the equipment related thereto. The features of the technological processes, the complexity of activities and their degree of dangerousness, the spread on the entire country’s territory and this sector’s specific corporate culture stand for key issues related to the environmental impact of Transgaz’ main activity. The territorial arrangement of the National Gas Transmission System ensures a permanent contact and interrelation with the environment, including with the economic and social sector. Under normal NTS operating conditions, no contaminants should be discharged in the air. There could appear potentially polluting accidental emissions in case of faulty operations, damages or upon execution of various construction and maintenance works. Page 18 of 54
SNTGN “TRANSGAZ” SA Medias Annual Management Report for 2007 The environmental issues on Transgaz’ sites, identified under normal, accidental and/or emergency operating conditions, were determined for such cases having a tremendous impact on the environment. All significantly impacting environmental issues were taken into account in the determination of preventive and corrective actions, correlated with environmental objectives and goals included in environmental management programmes. 1.1.6.2. The key actions and measures for improving the environmental management and/or mitigating the impact on the environment in 2007 In order to improve activity in such field, various actions were taken in 2007, as follows: - ensuring the familiarity with and the observation of the environmental legislation by all the company’s employees - notifying authorities and the public of the environmental policy by any means - monitoring of environmental factors (air, water, noise) according to the requirements of the environmental permits - identification of environmental issues on sites and activities - elaboration of studies for mitigating phonic pollution - modernization/upgrading works to equipment preventing pollution and mitigating the negative impact on the environment at national level - acquisition of absorbents for treatment of land affected by accidental spillage of oil products from aggregates - conclusion of contracts on waste taking over from the regional operating centres 1.1.6.3. The level of compliance with the legislation on environmental protection Under Order no. 876/2004 of the Ministry of Environment and Water Management on the approval of the "Procedure for the licensing of activities having a crucial impact on the environment", respectively Order no 1798/2007 of the Ministry of Environment and of Development on the approval of the "Procedure for the issuance of environmental licenses", the gas transmission activity, 6030 CAEN code, shall be performed exclusively based on environmental license. Again, under Order no. 860/2002 of the Ministry of Waters and Environmental Protection on the "Procedure for assessing the impact on the environment and for the issuance of the environmental agreement", it is necessary to be granted an environmental agreement in order to be able to start building or mounting works to new or current sites which involve the change in specifications or capacity. On the other hand, under Water Law no. 107/1996 and Order no. 662/2006 of the Ministry of Environment and of Water Management, Transgaz shall commence works only after having been granted such water management permits. Therefore, Transgaz holds 114 water management permits for all hydrographical basins and water crossings. In order to be granted environmental and water management licenses, Transgaz had studies and documentation elaborated pursuant to legal requirements. Page 19 of 54
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