EU Seveso II Directive

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Accident Profile Title Date/Time of Major Occurrence Start Date 15-08-2002 End Date 02-09-2002 Accident Type Major Accident Reported under EU Seveso II Directive Seveso II Status Art. 9 (Safety Report) Industrial Activity General chemicals manufacture (not included above) Reasons for Reporting Substances involved: greater than 5% of quantity in Column 3 of Annex I Accident Report Accident description Large flooding of Vltava River in August 2002 has inundated premises of the Spolana plant. During the flooding of the site between 14.8. and 18.8. 2002 water entered into establishments E 4990 and E 4920 and inundated the emergency retention sumps, in which are located the liquid chlorine storage tanks. Chlorine was released to the air and water on 15.8., 17.8. and 23.8. 2002. A class III chemical alert was announced on the 15.8. at 12.47. This alert was reduced to class II at 19.25 after sealing the establishment. Air in the sodium chloride storage was temporarily extracted on the 18.8.2002. The alert was reduced to class I at 11.58 on the 19.8.2002. The inside of establishment E 4990 was inspected for the first time sine 14.8 in the morning of 23.8.2002. A further release of chlorine occurred during extraction of tank 7 in establishment 4990 on the 23.8.2002. A class III chemical alert was announced at 20.02. The alert was reduced to class II at 00.25. After extraction of the chlorine from the stabilized containers on 2.9. the alert was reduced to class I. Accident involving Domino effects Natech events Transboundary effects Contractors Release Major Occurences gas/vapour/mist/etc release to air Fire Page 1 of 5

Site and installation Site description Most elements of security direction were not applied, because the accident was originated by a natural disaster - flood - more than 100-year floodwater, which had not been forecasted by official bodies and had not been expected by the establishment. Installation/Unit description Electrolysis plant, sodium chloride and hydrochloric acid operation and gas processing. Establishments E 4920 and E 4990 chlorine storage, storage tanks Additional comments: There are 5 storage tanks located in establishment E 4920. These tanks contain liquid chlorine and an acid egg with a total capacity of 5 x 85 t and 16 t of chlorine, respectively. Establishment E 4990 contains 5 storage tanks with a total capacity of 5 x 85 t of chlorine. Two tanks are permanently left empty in reserve for emergency provisions. Producer of damaged equipment: SPOLANA a. s., date of production: 1979, in operation since: 1982 Cause of accident: Storage Major occurrences process-associated (stockholding, etc. on-site of manufacture) Equipment Type container; pressurised (bullet, sphere, cylinder, etc.) Substances Substances Involved In total, 80.841 t of chlorine (C.A.S. No: 7782-50-5) was released. Remarks: Chlorine (classification according to the Law No.157/1998 Coll.) - T R23, Xi R36/37/38, N R50 In gaseous condition a yellow-green heavy gas, with a pungent odor, which irritates mucous membranes even in small quantity, produces headaches, eye irritation, conjunctives are reddish, membrane of respiratory organs is considerably congested, persistent cough and sharp pains in the breastbone. In greater concentration, there is a danger of edema or even death. NPK-P 3 mg/m3 = 1,03 ppm, PEL 1,5 mg/m3 =0,52 ppm Physical properties: Relative molecule mass 70,91 Density (liquefied) 1507 kg/m3 Boiling point -33,8 Substances Classification 00. NAMED SUBSTANCE Substances detail Substance chlorine CAS Number 07782-50-5 Quantities (t.) Involved Potential 0.29000 80.84100 Page 2 of 5

Causes Large scale flooding plus inadequate anti-flooding measures. Cause of accident: Plant/Equipment Causative Factor loss of process control corrosion/fatigue Type External Causative Factor natural event (weather, temperature, earthquake, etc.) Type Consequences Large scale flooding plus inadequate anti-flooding measures. Cause of accident: Human Off site At risk Fatalities Injuries /Effect The operational control room at SPOLANA a. s. reported the accident on 15.8.2002 at 12.47 pm (Class III chemical alert) to the Melnik fire brigade. They remained in permanent communication until the end of the occurrence. Emergency measures - Remarks: Used code 7999 - in the time of the promulgation of the III.degree of chemical alert in SPOLANA a. s., that means on 23.8.2002 from 20:02 to 00:25, the people were required to leave the free spaces and to enter closed Official action taken - legal action: CIZP started administrative procedures considering the case of the release of chlorine with SPOLANA a.s. The Police of CZ is performing an investigation because of the considerable threat to lives, health and propriety as a consequence of the flood. Page 3 of 5

Passed through discussions in the directory of the plant and in the meetings of the directory and emergency staff. A III degree Chemical alert was declared as a precaution, the concentration of chlorine within the borders of the plant did not reached the parameters for this type of alert. On-site systems Off-site external services Sheltering Evacuation Remedial Measure Decontamination Restoration /Effect drenching systems (water sprays, monitors, etc.); internal emergency teams (fire, ambulance, etc.) external fire-fighting services; external ambulance/victim-recovery services; military intervention; police intervention public alerted via media /Effect containing spread of substance environmental monitoring Lessons Learned Theme of the Lessons Learned Causes - Plant/Equipment Causes - Organisational Lessons Learned Measures to prevent recurrence: Technical measures to prevent events - inundation of the chlorine store: To separate constructions of galleries, so that the containers, when lifted, could not lift the constructions of galleries of neighboring containers. To put the containers into special construction, which would hold the container inside and would prevent the containers being moved. Measures to mitigate consequences: Technical measures for litigation of consequences in case of chlorine release: - To install, as a steady water screen, a dry air pipe system out of the store of chlorine with a possibility to connect it to an autonomous pump with a capacity determined by a project. - To limit chlorine depositing only to the deposit E 4920, that means to 50 % of original depositing capacity. - To screen further risks in the chlorine storage by a form HAZOP. - To ensure suction of the chlorine deposit by other distribution tubes in sufficient height for a possible level of floodwater, so that it is possible to remove even if the retention tanks are inundated. - To install an autonomous monitoring of accidents with an uninterrupted source of electric energy, with a signalizing siren and a lighthouse to deposit E 4920. - To construct deposit E 4920 as sealed, with fuses against extreme pressure and with a possibility to inundate in cases that the whole building could be lifted by floodwater. Organization measures Page 4 of 5

- During any non-operation of the sodium hypochlorite plant for longer than 8 hours, carry out exhaustion of tube distributors into shut-off armature from the containers of chlorine up to the distributors. - On the basis of the study of HAZOP, to prepare adequate organization regulations and to put them into use. Page 5 of 5