Environmental 2006 - Attock Refinery Limitedarl.com.pk/downloads/envreport2006.pdf · Attock...

AnnualEnvironmental

Report

A Safe, Clean & Healthy Environment

2006

Attock Refinery Limited

ARL

MESSAGE FROM THE CHIEF EXECUTIVE OFFICERABOUT THIS REPORTCOMPANY PROFILE

Core Values

The Management

The Company

Refining at ARL

Present ARL Configuration

Plants & Off-Site Facilities

Attock Hospital Limited (AHL)

Morgah Biodiversity Project (MBP)

National Cleaner Production Center Foundation (NCPC)

Attock Sahara Foundation (ASF)

CORPORATE SOCIAL RESPONSIBILITY AND ARL

HEALTH, SAFETY AND ENVIRONMENTAL (HSE)

MANAGEMENT SYSTEMS

Company HSE Governance

HSEQ Policy

Environmental Management System (EMS)

Environmental Aspects &Impacts

Control on Significant Environmental Impacts

EMS Features

Environmental Objectives & Targets

ENVIRONMENTAL PERFORMANCE 2006

Compliance to NEQS

Achievements & Honors

Management Standard Certifications

CO

NTE

NTS

Attock Refinery LimitedARL02

Last year, ARL established a dedicated HSE department

with a separate environmental section. This section

constantly provides solutions relating to discharges to

land/air and waste management. Further, development of key performance indicators has helped ARL to keep a check on our environmental performance against

international level bench marking.

ARL promotes sustainable community development as part of its core values to create the foundation for a more equitable, just, productive, competitive and

knowledge- based environment. As a responsible

corporate citizen, ARL has always believed in working

as part of the community and made sizable contributions

for projects in the field of environment, health, income

generation, women development, HRD, education and

sports.

ARL's CSR initiatives whether in the field of

environment, health care, development of women skills,

elimination of poverty, or conservation of rich

biodiversity, are all sustainable in nature. Examples to cite are: development of the Morgah Biodiversity Park (MBP), the only one of its kind in Asia,

establishment of the National Cleaner Production Center (NCPC), a center of excellence on environment,

the Attock Hospital (Pvt) Limited (AHL), a 50 bed

hospital offering affordable health facilities to the

community, and Attock Sahara Foundation (ASF), an

NGO providing training to the poor women folk of the

community.

As an environment friendly company, we have in-house

facility for fabrication and installation of solar panels for

water heating and distillation. We use recycled water in

our orchards through drip irrigation system and grow

vegetables through organic forming. We have stopped

use of polythene bags and introduced paper bags at

ARL's Fair Price Shop.

Working with a mission to be a model petrochemical

organization, ARL is committed to continual

improvement of environmental performance through

best environmental practices.

It gives me immense pleasure to share ARL's

Environmental Report for 2006 with you. This Report

not only provides comprehensive information about our

routine environment related activities but also an insight

into explicit steps taken to achieve high standards for

ARL's Environmental Management System.

ARL has a rich history as it was the first Refinery

commissioned (1922) in South Asia. Over the years we have upgraded our plants and also have placed great

emphasis on environmental issues. This rich experience

has helped us to maintain a fine balance with the

environment.

We feel proud to announce our official certificationsfor ISO-9001, ISO-14001 & OHSAS 18001. We were

the first refinery to achieve ISO 14001 in Pakistan in

year 2002. We however, have not and cannot afford to,

rest on our laurels when it comes to the environment.

Achieving ISO 14001 was the means to an end, not the end in itself: it was to bring and sustain our

Environmental Management System to a level of

continuous improvements as part of the Plan, Do, Check, Action (PDCA) cycle.

MESSAGE FROM THE CHIEF EXECUTIVE OFFICER

ENVIRONMENTALREPORT

2006

By the core of our business, we are dealing with

environmental problems of diverse nature. Operating at a strategically significant location, we fully realize our

role towards development of a sustainable business. This report illustrates our overall commitment to our

Core Values with special emphasis on the aspect of

corporate social responsibility.

The report gives an outline of our HSE performance

during year 2006 by not only providing an overview of the routine activities, but also an insight into the

explicit steps taken in order to set higher standards of functioning.

We believe in making every effort to minimize the

negative impacts of our business on any feature of

environment, occupational health or safety. In line with

commitment to achieve excellence in HSE management,

our organization is energetically working in various

directions to set elevated performance standards.

Our health, safety and environment management systems

have undergone major improvements in the recent past.

Achievement of OHSAS 18001 certification in

December 2005 and Annual Environment Excellence

Award - 2006 (NFEH) in July 2006 are a clear reflection

of our efforts towards conservation of environment and

care for our employees.

Spotlight is also on the special initiatives taken by ARL

in conjunction with the pledge for provision of

community services and realization of social

responsibilities.

ABOUT THIS REPORT

03

ENVIRONMENTALREPORT

2006

Vision 2020

Mission 2010

To be a wor ld class and leading organization continuously providing high quality and environment - fr iendly energy resources.

To be a model diversified energy resources and petrochemical Organization exceeding expectations of all stakeholders. We will achieve this by utilizing best blend of state-of-the-ar t technologies, high per forming people, excellent business processes and synergetic organizational culture.

COMPANY PROFILE


We believe in respect for the community and preserving the environment for our future

generations and keeping National interests paramount in all our actions.

ENVIRONMENTALREPORT

2006

ARL

Integrity & Ethics

QualitySocial

Responsibility

Learning& Innovation

Teamwork

Empowerment

Integr ity & Ethics

Quality

Social Responsibility

Learning & Innovation

Teamwork

Empowerment

Integrity, honesty, high ethical, legal and safety

standards are cornerstones of our business practices

We pursue quality as a way of life. It is an attitude that

affects everything we do for relentless pursuit of

excellence

We believe in respect for the community and preserving

the environment for our future generations and keeping

National interests paramount in all our actions.

We embrace lifelong learning and innovation as an

essential catalyst for our future success. We believe in

continuous improvement and to seize opportunities

inherent in change to shape the future

We believe that competent and satisfied people are the

company's heart, muscle and soul. We savour flashes of

genius in the organisation's life by reinforcing attitude of

teamwork and knowledge sharing based on mutual

respect, trust and openness

We flourish under an ecosystem of shared understanding founded on the concept of empowerment, accountability and open communication in all directions

CORE VALUES

Our success will not be a matter of chance, but of commitment to the following enduring beliefs and values that are ingrained in the way we think and take actions to pursue a climate of excellence

05

ENVIRONMENTALREPORT

2006

Senior Management(Executive Committee)

S. Ahmed AbidAssistant General Manager (Finance & Corporate Affairs)

Ejaz H. RandhawaSenior Manager (Technical Services)

Salman TariqDeputy Manager (Engineering)

Khurram ShirazDeputy Manager (Business Review & Assurance)

Asif SaeedCoordinator(Human Resources & Administration)

Malik Masood SadiqSenior Manager (Commercial & Materials Management)

Dr. M. Ilyas FazilAssistant General Manager (Technical Services, Planning & Development)

M. Adil KhattakChief Executive Officer

Zia ur RehmanManager(Finance & Accounts) / Company Secretary

Yawar IkramSenior Manager(Maintenance & Engineering)

Mansoor ShafiqueSenior Manager(Operations)

From Left To Right:

THE MANAGEMENT


ENVIRONMENTALREPORT

2006

It all began in February 1922, when two small (2,500

Barrel per day, BPD) “Stills” came on stream at Morgah.

The setting up of these facilities followed the first

discovery of oil at Khaur where drilling started on

January 22, 1915 and at a very shallow depth of 223 feet

5,000 barrels of oil flowed.

This was followed by discovery of a well at Dhulian in

1937. A 5,500 BPD LUMMUS Two-Stage-Distillation

Unit, a Dubbs Thermal Cracker, Lubricating Oil

Refinery and Wax Purification facility and the Edeleanu

Solvent Extraction Unit for smoke-point correction of

Kerosene were added. The Morgah Refinery produced

the full range of petroleum products: gasoline, Middle

distillates, fuel oils, lube base oils, waxes, greases,

solvent oils and various grades of paving as well as

specialty bitumens.

ARL was incorporated as a private limited company in

November 1978 to take over the business of the Attock

Oil Company relating to refining of crude oil and the

supply of refined petroleum products. ARL became a

public limited company in 1979.

In 1981, the capacity of the Refinery was increased by

the addition of two Distillation units of 5,000 and 20,000

BPD capacity, respectively. Due to their vintage, the old

units for lube/wax production, as well as Edeleanu, were

closed down in 1986.

In 1999, ARL installed a Heavy Crude Unit of 10,000

BPD for producing asphalt. A 5,000 BPD Reformer

Complex was also installed at the same time to produce

low lead Gasoline directly from the Refinery. In 2000, a

Captive Power Plant with installed capacity of 7.5

Megawatt was commissioned.

Till late 2000, Crude oil was being received through

pipeline and bowsers in the ratio of 13% and 87%,

respectively. To reduce road congestion and traffic and

environmental hazards, the crude oil being received from the Southern fields through bowsers is now being

decanted at a new Decanting Facility at Khaur and

pumped to the Refinery through pipelines, thereby

ensuring both an environment friendly mode of

transportation and maximum utilization of existing assets (Pipelines).

Company Name:

Attock Refinery Limited

Site:

Morgah Rawalpindi

Current nameplate Capacity:

40,000 BPD

Employment Information:

Senior Management Staff = 107

Junior Management Staff = 87

Non Management Staff = 437

Contract Staff = 71

Contractor Staff = 390

Trainees = 118

TOTAL = 1210

THE COMPANY


ENVIRONMENTALREPORT

2006

Increasing refining capacity,

Providing environment-friendly and high quality

petroleum products,

Clean, pollution free production practices and

Diversification.

Value Addition

and is

Expor ts

Future Expansion Plans

ARL is in continuous search for value-added products.

The production of Polymer Modified Bitumen (PMB) in

2001, is the first venture of this kind in the country.

ARL has successfully added JP 8 to its range of Jet Fuels

production, which already includes JP-1and JP-4.

ARL has already supplied Low Sulfur Diesel and Low

Sulfur Furnace Oil to the market now targeting

low benzene and low aromatics gasoline production, and

Diesel confirming to Euro II / IVstandards.

ARL is successfully exporting PMG, HSD and Jet Fuels

to Afghanistan and Petrochemical Grade Naphtha to

Singapore.

ARL's Management is committed to:

ARL has embarked on ambitious future plans keeping in

view the objectives outlined above. A brief description of

the projects that are being considered as part of the short

and long term Corporate Plans of ARL is as under:

09

ENVIRONMENTALREPORT

2006


Cross Country Pipeline from Machike-Taru

Jabba-Peshawar (100,000 BPD)

150 MW Power Plant (IPP)

Hydro-Desulfur ization Unit (HDS)

To satisfy the need for white oil supplies to the Peshawar

region and reduce potential environmental hazards due

to the transportation of petroleum products through road

bowsers, a 470 km product oil pipeline is planned.

The Project has demonstrable benefits namely strategic

infrastructure availability, environmental benefits,

commercial benefits to the consumer, reduction in

congestion on road, adulteration, and accidents.

Preflash Unit

ARL intends to install a Preflash Unit of 12,400 BPD to

enhance its existing distillation capacity to 50,000 BPD.

This will cater for the expected crude discoveries in the

region.

Isomer ization Unit (7,000 BPD).With the increase in crude processing capacity,

availability of Light Straight Run Naphtha (LSRN) will

also increase. In order to further improve the octane pool

and reduce benzene aromatics of the Gasoline product,

an Isomerization Unit is planned to upgrade the LSRN to

a higher octane level.

ARL is planning to build a 150 MW Power Plant on its premises based on the Low Sulphur Fuel Oil (LSFO) produced from the indigenous crude oil processed at the Refinery. This shall operate as an Independent Power Plant (IPP) supplying electricity to the Utility company,WAPDA.

In compliance with directives of Ministry of Petroleum and Natural Resources, ARL is also planning to install a Diesel Hydro-desulfurization Unit (HDS) to reduce sulfur in its straight run Diesel to Euro II specifications (500 wt ppm).

ENVIRONMENTALREPORT

2006

CAPACITY UTILIZATIONCAPACITY UTILIZATION

Per

cen

tag

eP

erce

nta

ge

1994-950

80

100

120

20

40

60

1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06

11

Liquefied Petroleum Gas (LPG)

Unleaded Premium Motor Gasoline (PMG)

Solvent Oil

Kerosene

Aviation Fuels (JP-1, JP-4 and JP-8)

Mineral Turpentine (MTT)

Low Sulphur High Speed Diesel (HSD)

Light Diesel Oil (LDO)

Jute Batching Oil (JBO)

Low Sulfur Furnace Fuel Oil (LSFO)

Paving Asphalt (Var ious Grades)

Cut Back Asphalt (Var ious Grades)

Polymer Modified Bitumen (PMB)

ARL's current configuration allows it to process the

lightest to the heaviest (12-65 API) crude to produce a

complete range of petroleum products from LPG to

Asphalt including specialty products such as Jet Fuels

(JP-1, JP-4, and JP-8), Cutback Asphalts, Polymer

Modified Asphalt, Mineral Turpentine Oil, and Solvent

Oil. Following is the complete spectrum of ARL

products:

REFINING AT ARL

ENVIRONMENTALREPORT

2006

PRESENT ARL CONFIGURATION

5,000

Reformer

Blending

QC Lab

5,000HBU-II

20,000HBU-I

CrudeStorage

Crude (By Road)

Crude (By Pipeline)

Crude Distillation Units

10,000HCU

LPG

PMG

Solvent Oil

Kerosene

JP-1, JP-4, JP-8

MTT

HSD

LDO

JBO

LSFO

Asphalts

PMB

5,000LUMMUS


ENVIRONMENTALREPORT

2006

HEAVY CRUDE UNIT (HCU)

Commissioned in May 1999, HCU has been designed to process 10,000 BPD of indigenous heavy crude. Thetwo-stage (Atmospheric & Vacuum) crude distillation unit targets production of paving-grade Asphalt and Furnace Fuel Oil along with other distillate products including LPG, Naphtha, Kerosene, High Speed Diesel, Light Diesel Oil, and Jute Batch Oil. The unit is equipped with state-of-the-art Distributed Control System (DCS) for controlling operational parameters. The HCU gives ARL the capability to process all Heavy Crude of the Country.

LUMMUS PLANT

Lummus is the oldest (1938) of all running Refinery crude distillation units. Designed to process 5,000 BPD,the unit is producing Naphtha, Kerosene, HSD, JP-1, MTT, and Furnace Fuel Oil.

REFORMER UNIT

The Catalytic Reforming Unit, commissioned in June 1999, is a Fixed Bed Semi Regeneration type designed by UOP. Its design capacity is 5,000 BPD. Main purpose of the process is to upgrade low-octane straight-run naphtha to higher-octane motor fuel blending component. The plant incorporates a Hydro-treating unit, designed to remove harmful contaminants from Reformer feed such as sulphur, nitrogen, condensed ring aromatics and metals. DCS has been installed for operational control of the Reformer complex.


CRUDE RECEIPTS

ARL is receiving and processing crude from Northern

and Southern oilfields of Pakistan. Crude from the

Southern fields is Light Sweet whereas crude from

Northern fields is of Light Sweet, Light Sour and

Medium/Heavy type. 70% of the crude processed at

ARL is received through pipeline and rest is through

road bowsers. Southern crude, which is 45% of total

receipts, is received at Khaur Crude Decanting Facility

(KCDF), located 100 km from the Refinery in Khaur.

HOWE BAKER UNITS-I & II (HBU I & II)

These units were commissioned in 1980 and have been

designed to process 20,000 BPD and 5,000 BPD of

light-sweet and sour crude oil, respectively, in blocked

operation to produce Light Gases, Stabilized Naphtha,

Kerosene, High Speed Diesel, Light Diesel Oil, Furnace

Fuel Oil, special products like Jet Fuels (JP-I, JP-4) and

Mineral Turpentine Oil. LPG can also be produced at

HBU-I.

PLANTS & OFF-SITE FACILITIES

ENVIRONMENTALREPORT

2006

15

PRODUCT METERING STATION (PMS)

QUALITY CONTROL LABORATORY (QCL)

EFFLUENT WATER TREATMENT PLANT

(ETP)

Pipeline dispatches of the major Refinery products to the

oil marketing companies (OMCs) namely Attock

Petroleum Limited (APL), Pakistan State Oil Company

Limited (PSOCL), Shell Pakistan Limited (SPL),

Chevron, and Total are managed at Product Metering

Station. The products dispatched through pipeline

include Naphtha, Motor Gasoline, High Speed Diesel,

Kerosene, Jet Fuel and Furnace Oil.

QCL offers a wide range of services for Refinery and

other customers. All the tests are performed as per

ASTM, IP, UOP, AASHTO or USEPA standards. QCLis playing an active role for monitoring of Refinery

effluents according to requirements of National

Environmental Quality Standards (NEQS). ARL's QCL

was the first laboratory in the oil-refining sector of

Pakistan to achieve the coveted ISO 9002 accreditation

in 1999. Working is also in progress for ISO-17025

accreditation through Pakistan National Accreditation

Council (PNAC).

For control of its effluent water ARL is using the

Primary and Secondary treatment. Separate concrete

drain channels have been constructed for collection of

oily and non-oily wastewaters. Removal of non-

emulsified oil in the oily effluents is facilitated by API

separators, equalization sump and Slant Rib Coalescing

Unit (SRC). Dissolved Air Floatation Unit (DAF) assists

further in removal of suspended solids, fats, oil & grease

(FOG) from the effluent stream.

POWER PLANT

ARL commissioned a 7.5 MW captive Power Plant in

2000, supplying reliable electrical power to the Refinery

process plants and estate. Based on heavy fuel oil diesel

engines, it employs the latest technology.

ENVIRONMENTALREPORT

2006

The management of ARL is

committed to establish, implement

and maintain a successful HSE

management system and continually

improve its effectiveness in

accordance with the requirements of ISO 14001 and OHSAS 18001

standards. The overall management of ARL HSE systems is done by the

Health Safety and Environment

Department. This separate department was established in March 2005 in order to centralize all the related activities. With

availability of advisors from

consultant organizations on its panel, the department specializes in all the pertinent fields.

MonitoringGeneral Safety and Accident PreventionOperational SafetyChemical SafetyDriving SafetyFire ProtectionDisaster/Emergency Preparedness & Response Environmental Protection and Hazardous Materials ManagementSanitationOccupational HealthCorrespondence with Government and other External AgenciesHSE requirements for Contractors/SuppliersHSE AuditingManagement Programs

A recent advancement in the management policy is integration of the Occupational Health & Safety, Environmental and Quality systems. This combines procedures for the basic elements of all the relevant standards.

Main areas of responsibility of HSE depar tment include:

HEALTH, SAFETY AND ENVIRONMENT (HSE) MANAGEMENT SYSTEMS


ENVIRONMENTALREPORT

2006

Following sub committees report to the Central HSE

Committee on monthly basis:

ARL, in conjunction with its commitment to

environmental conservation, has established a basic

policy on environmental issues and is energetically

implementing a variety of activities. A separate HSE

department and cross-departmental functioning makes it

a good combination for overall management of the

activities.

Our philosophy on corporate governance regarding HSE

issues is that accountability should be placed in the Line

Management and that the HSE group is a key resource

for smooth and effective performance of that

accountability. The concept is that Area In-chargee of a

certain facility will be responsible for looking after the

immediate HSE related issues. This distribution of the

authorities and responsibilities helps in better

implementation of the systems.

A Corporate Management Review Committeee has

been formed comprising of the top management and

chaired by the Chief Executive Officer. The committee

quarterly reviews the progress of the Management

Systems, takes decisions on all the critical issues and

ensures proper allocation of resources at appropriate

levels.

We have gone for improvement in our system that is

beyond the prerequisite requirements of the ISO

Management Standards. In this direction a major

revamp of the HSE management systems led to

formation of a Central HSE Committeee headed by

Chief Executive Officer with departmental managers

being its members to oversee the Company's overall

efforts towards HSE activities as well as take key

decisions.

1. Behavioral & System Audit (BSA) Committee2. Procedures, Rules & Discipline (PRD) Committee3. Incident Investigation & Reporting (IIR) Committee4. Process Safety & Risk Management (PSRM) Committee 5. Contractor Safety Management (CSM) Committee6. Emergency Preparedness & Response (EPR) Committee7. Training & Certification (T&C) Committee8. Transportation, Logistics & Driving Safety (TLDS) Committee9. Office Safety/Off the Job Safety Committee10. Rewards & Recognition Committee11. Occupational Health & Industrial Hygiene (OHIH) Committee

COMPANY HSE GOVERNANCE

17

ENVIRONMENTALREPORT

2006

ARL is committed to provide the best quality products in

the market, endeavors to protect the environment and to

ensure health and safety of its employees, contractors

and customers and to work for continual improvement in

health, safety, environment and quality (HSEQ) systems.

ARL is committed to comply with all applicable Health,

Safety, Environment and Quality laws and regulations.

The policy shall be used to demonstrate this commitment

through:

ARL seeks to conduct its activities in such a way as to

promote the health of and avoid harm to its employees,

contractors, visitors and the community.

ARL ensures that every employee or contractor works

under the safest possible conditions. It is our firm belief

that every effort must be made to avoid accidents, injury

to people, damage to property and environment. ARL

believes that practically all accidents are preventable by

carrying out risk assessments, and reducing risk

identified, by appropriate controls.

ARL is committed to prevent pollution by the efficient

use of energy throughout its operations, recycling and

reuse of effluent wherever possible and use of cost-

effective cleaner production techniques that lead to

preventive approach for sustainable development.

ARL recognizes employees' input towards quality by

emphasizing skills development and professionalism.

ARL must be customer driven, cost effective and

continuously improving services, works and products To meet requirements of the market.

ARL conducts periodic audits and risk assessment of its

activities, processes and products for setting and

reviewing its objectives and targets to provide assurance,

to improve HSEQ standards and loss control. ARL is

committed to share all pertinent information related to

HSEQ with all concerned parties.

Health

Safety

Environment

Quality

HSEQ POLICY


Attock Refinery LimitedARLHEALTH, SAFETY, ENVIRONMENT AND QUALITY POLICY

ARL is committed to provide the best quality products in the market,endeavors to protect the environment and to ensure health and safetyof its employees, contractors, and customers and work for continualimprovements in Health, Safety, Environment and Quality (HSEQ)systems.

ARL is committed to comply with all applicable Health, Safety,Environment and Quality laws and regulations.

The Policy shall be used to demonstrate this commitment through:

HealthARL seeks to conduct its activities in such a way as to promote the healthof, and avoid harm to its employees, contractors, visitors and the community.

SafetyARL ensures that every employee or contractor works under the safestpossible conditions. It is our firm belief that every effort must be made toavoid accidents, injury to people, damage to property and the environment.

ARL believes that practically all accidents are preventable by carrying outrisk assessments, and reducing risks identified, by appropriate controls.

EnvironmentARL is committed to prevent pollution by the efficient use of energythroughout its operations, recycle and reuse of the effluent whereverpossible, and use of cost-effective cleaner production techniques thatlead to preventive approach for sustainable development.

QualityARL recognizes employees' input towards quality by emphasizing skillsdevelopment and professionalism.

ARL must be customer driven, cost effective and continuously improvingservices, works and products to meet requirements of the market.

ARL conducts periodic audits and risk assessment of its activities, processesand products for setting and reviewing its objectives and targets to provideassurance, to improve HSEQ standards and loss control. ARL is committed toshare all pertinent information related to HSEQ with all concerned parties.

ENVIRONMENTALREPORT

2006

Refining business inherently consumes a large amount of resources and energy and is associated with high

degree of environmental risks. The process of assessing

the environmental impacts of various activities starts

from identification of environmental aspects for every

individual section and activity. Significance of

environmental impacts is derived out of a risk

assessment procedure which is a part of the over all

environmental management system. Each impact ranked

“Significant” is then targeted for control and worked

upon according to a preset action plan.

The priority parameters include the waste streams

generated at upstream and downstream of various

process units and storage areas. This primarily includes

oily and non oily wastewater, hydrocarbon sludge

generated from cleaning of storage tanks and other

sources and air emissions. Also of concern are

environmental impacts associated with auxiliary

operations like power production, and maintenance.

The Environmental Management System (EMS) Manual

provides all the elements of Environmental Management

System at the Refinery, including:

Policy requirements

Planning on significant environmental aspects

Legal and other requirements

Objective and target setting

Environmental management programs

Implementation and operations

Responsibilities

Training, awareness and communication

requirements

Documentation and document control

Emergency preparedness and response

Auditing

Checking and corrective action; and

Management review

ENVIRONMENTAL MANAGEMENTSYSTEM (EMS)

19

ENVIRONMENTALREPORT

2006


ENVIRONMENTAL ASPECTS ANDIMPACTS

Crude oil receipt, handling and storage

Hydrocarbon sludge from storage tanks and drain channels

Potential for soil and water contamination

Safely treated through bioremediation

Plant operations

Utility operations

Oily wastewater

Noise

Hazardous solid waste e.g. oily rags

Hydrocarbon sludge

VOCs emission from drain channels

Leakages

Heat

Spent caustic

Cooling tower blow-down water

Boiler blow-down water


Diluted before final discharge. Working in progress for use as gardening water after dilution


Recycled for use as cooling water for LUMMUS plant after primary treatment


Diluted before final discharge. Also,working in progress for spent caustic treatment facility

Occupational health Administrativecontrols in place

Degradation of ambient air quality

Potential for soil contamination

Containmentprocedure in place

Care exercised in operations and covering of drain channels being planned


Collected after regular intervals and safely treated through bioremediation

Potential for soil quality degradation

Collected separately and disposed through incineration

Noise pollution Administrativecontrols in place and personal protective equipments being used


Processed through Effluent Treatmentsystems for removal of oil

Leakages/ spillages Potential for soil contamination

Spill containment procedure in place. Working in progress for implementing in-situ bioremediationtechnique

Activity / Area Aspect Impact Control / Mitigation

ENVIRONMENTALREPORT

2006

21

Noise

Water consumption

Steam leakages

Sludge from brine and blow-down pits

Hydrocarbon sludge from storage tanks and drain channels

Leakages/ spillages

Hazardous solid waste e.g. oily rags


Collected separately and disposed through incineration


Spill containment and treatment procedures in place. Working in progress forimplementing in-situ bioremediationtechnique


Treated through bioremediation

Product handling, storage and dispatch


Disposed at designated land-fill sites

Energy wastage

Resource depletion Being controlledthrough water conservation program

Efforts on line to minimize losses

Noise pollution Administrativecontrols in place and personal protectiveequipments being used

Chemical storage and handing

Routine maintenance Oil used for washings etc.

Discarded insulation material

Health impacts Disposed at designated land-fillsites

Soil contamination Disposal procedure in place

Leakages

Used plastic and metal drums

Smell from stored materials

Localized odor,nuisance

Administrativecontrols in place

Potential degradation of land quality.Also, possible health impacts if used for storage of drinking water, milk etc. Out side Refinery

Metal drums are disposed by cutting them to form sheets and plastic drums are sold for recycling after cutting into pieces


Containment and disposal procedures in place


ENVIRONMENTALREPORT

2006


Shut Downs

Power Plant operations

Workshop, Transportand Heating, ventilation & Airconditioning

Metal debris

Noise

CFC Refrigerants (Chloro Floro Carbons)

Ozone depletion As a matter of policy,from September 2004 all the procured equipments(refrigerators,air conditioners and fire extinguishers) use Green Gases (R-134 A and R 22). Working in progress for phase-out in existing areas of use

Noise pollution Administrativecontrols in place and personal protective equipments being used

Potential land quality degradation

Disposed off with metal scrap

Stack emissions

Blow-down water from cooling towers

Noise Noise pollution Administrativecontrols in place and personal protective equipments being used


Recycled for use as cooling water for LUMMUS plant after primary treatment


Monitoring to observe compliance

Scale/ hydrocarbon sludge

Solid waste e.g. oily rags, damaged insulation etc.

Oily wastewater

Water consumption for PIG decoking

Resource depletion Evaluation for water recycling system completed

Potential for water contamination

Processed through Effluent Treatmentsystems for removal of oil

Potential for soil degradation

Properly disposed through set practices



Miscellaneous scrap Potential soil quality degradation

Scrap managed at Salvage and ScrapYard for reuse and disposal of material


ENVIRONMENTALREPORT

2006

23


Laboratory

Used chemicals

Emissions Localized odor, healthimpacts

Fumes hoods installedat all locations

Potential for water and soil contamination

Disposed after neutralization

Emissions from Foundry furnaces


Monitoring to observe compliance

Unused Samples Potential for soil and water contamination


Recovered slop oil

Hydrocarbon sludge from cleaning operations

VOCs emission

Parameters exceeding NEQS limit

Miscellaneous Scrap material

Damaged Asbestosfrom old buildings

Health hazard Disposed at designated land-fill site

Potential for land quality degradation

Scrap managed at the Scrap Yard for reuse of material. Disposal arranged through Commercial & Material Management Department

Degradation of water quality and land contamination

Strict monitoring of outgoing water.Preliminary design reports prepared for addition of secondary treatment unit

Odor, degradation of ambient air quality

Administrativecontrols in place and Personal Protective Equipments being used



Effluent TreatmentPlant


Separate tanks dedicated for treatment before recycling

ENVIRONMENTALREPORT

2006


CONTROL ON SIGNIFICANT ENVIRONMENTAL IMPACTS

The 470 km long Machhike Morgah Taru Jabba

Pipeline (MMTJPP)

Cleaner Production / Energy Efficiency Assessment

Waste Heat Recovery from Power Plant flue gasses

Kohat - ARL Crude Oil Pipeline Project

Installation of new Heater for Distillation Unit

HBU-II

Reduction in Green House Gases Emissions

ARL has taken a number of initiatives to reduce its

inventory of the Green House Gases. So far implemented

projects have resulted in a saving of 20,358 M Tons/

Year of CO2, while the upcoming projects are expected

to offer further significant emission control of 163,102

M Tons/ Year. This makes an overall reduction in CO2

emissions by 183,460 M Tons/Year.

Implemented Projects

Upcoming Projects

Adoption Of Bioremediation Technique For

Disposal Of Hydrocarbon Sludge From Different

Sources

Hydrocarbon sludge generated from differentsources poses a significant threat to degradation of

environment, if not handled properly. The previous

practice was to incinerate this huge quantity of sludge,

which itself was an initiative to discontinue the sale of this hydrocarbon sludge in market. One step further,

to avoid the substantial volume of air emissions from

incineration operation, the company has now switched to bioremediation technique for environment friendly

disposal of this hydrocarbon sludge.

Minimization of Hydrogen Rich Gas Flaring

Steam Production Minimization at Boilers

Solar Water Heating Systems

Electric Power Consumption Minimization

ENVIRONMENTALREPORT

2006

25

program requirements shall always be the primary

concerns. Energy conservation measures are achieved

by using the most cost-effective, energy-efficient

approach with consideration given for flexibility of

use and future remodeling convenience.

ARL has been celebrating Energy Conservation

Fortnight from January 1st to January 15. The

objective is optimal minimization in utilization of

Energy (electricity, fuel, gas, water & steam), in

order to conserve and provide solutions and

preventive measures to save energy. Various teams of professionals are organized to explore the causes of energy wastes, to promote energy efficiency, to

identify the problem areas and check that energy

saving measures are being implemented. Main Feature of the concluding ceremony is a walk on

energy saving.

Participation from the people of adjoining areas and employees reaches to hundreds. Such types of

events truly contribute to create awareness amongst

the community and promote the objective with

effective outcome.

Work on Solar Energy

Attock Refinery Limited has taken initiative in the field

of solar thermal energy to start manufacturing of solar

water heating systems in collaboration with Pakistan

Council of Renewable Energy Technologies (PCRET)

back in late 2000.

The first ARL manufactured solar water-heating unit was commissioned at one of our residential bungalows in February 2001. The performance report shows that

ARL solar water heating unit is 64 % efficient that is

comparable to the international standards.

Now, manufacturing of solar water-heating units is in

progress at ARL workshop and they are being installed

at ARL residential area named 'Solar Village'. ARL has

also installed solar distilled water stills used for supplies

to the Quality Control Laboratory, solar wall for space

heating, solar ovens and solar water disinfection units.

Energy Conservation

Conservation of energy and natural resources is an

integral part of the Company’s management policy.

The refinery employs a variety of energy conservation,

recycling, and other techniques to minimize the

consumption of resources and life cycle costs.

However, occupation health, safety, comfort, and

ENERGY CONSUMPTION (MMBTU / BBL)

Period

0.240

0.220

0.200

0.180

0.160

0.140

0.120

0.100

ENERGY CONSUNPTION(MMBTU / BBL)

Jan-00 Jan-01 Jan-02 Jan-03 Jan-04 Jan-05 Jan-06

ENVIRONMENTALREPORT

2006

Laundry wastewater recycling Wastewater recycling for gardening Minimization in steam consumption Condensate recovery Control of garden water lossesPinching the water faucetsAdjustment of water level in toilet flush tanksUse of Press-Guns on water hose pipes at Plants and

homesSwimming pool water recycleSaving in Firewater

The positive outcome form the above mentioned

efforts is evident from the graph showing our water

consumption trends.

Disposal of Metal and Plastic Drums

Used metal and plastic drums were earlier issued to

workers of the Refinery. This issue of drums was banned

and the procedure implemented in place was disposing

of these drums in scrap by cutting them into pieces.


Water Conservation

In 1997, water withdrawal from ground water

sources at ARL totaled 262 million gallons. Most of

this water was used consumptively with minimum

recycling. The refinery is located in an arid region

where surface water sources are mostly dependent

on temporal rains. Also in several areas of the

surrounding, ground water is being depleted faster

than it can be replenished and water shortening is a

serious thereat. Such situation strongly dictates the

need for water conservation.

At start, in parallel to the challenges for water

conservation, ARL was faced with its major up-

gradation project, which looked for enhanced water

use. The extrapolation of the then water

consumption trends would have resulted in

increased use of water, but on the contrary, the

overall spending has subsided in spite of the

expansion of the facility.

To start with, first problem was lack of reliable

information on water consumption. Precise data for

water consumption in different areas was made

available by installation of water meters. Following

phase was identification and re-categorization of

different areas of major water usage which lead to

formulation of a widespread water conservation

program.

ARL, with its Water Conservation Report, also

participated in the Stockholm Industrial Water

Award, presented by the Royal Swedish Academy of

Engineering Sciences, the World Business Council

for Sustainable Development and the Stockholm

Water Foundation.

Main features of the Water Conservation Program

were:

Control of Oily effluent water from plants and

storage areas

Recycling of non-oily effluent water from

cooling towers, boilers and plants

Car wash wastewater recycling

Kitchen wastewater recycling

CRUDE PROCESSING Vs WATER CONSUMPTION

2000000

1800000

1600000

1400000

1200000

1000000

800000

600000

400000

200000

0

2000 2002 2003 2004

1200000

1000000

800000

600000

400000

200000

0

To

talC

rud

eO

ilP

roc

es

se

d(T

on

s)

Wa

ter

Co

ns

um

pti

on

(To

ns

)

PERIOD

Total Crude Oil processed (Tons) Annual Water Consumption (Tons)

2001 2005 2006

ENVIRONMENTALREPORT

2006

Monitor ing on Drain Channels

The huge network of the Refinery drains is monitored on a quarterly basis. Main focus of the survey is to identify cleaning and repair requirements. This also helps to remove bottlenecks in the system helping to achieve better control over effluents.

Monitor ing on Vehicular Emissions

Vehicle emissions are monitored on biannual basis. Thismainly governs the mileage based maintenance schedule for vehicles.

Noise Monitor ing

Noise monitoring is done at all the critical areas. Thesurvey conducted is Walk Through survey which is repeated quarterly. ARL is in process of developing its “Hearing Conservation Plan” featuring Monitoring of noise levels, Audiometric testing, Hearing Protection and Training programs for employees.

Status of all the above is reported to the top management in quarterly reports and decisions are made for improvement of the overall system.

Internal Audits

An integrated HSE audit scheme has been implemented. These internal audits are part of the PDCA (Plan-Do-Check-Action) cycle. The audits are scheduled on regular intervals and are conducted by trained auditors. ARL has its team of certified Lead Auditors for all the standards including ISO 9001, ISO 14001, and OHSAS 18001.

Environmental Training and Education

The success of the management system of the Company

requires that all its employees have an appropriate

awareness with regard to environmental issues. ARL,

therefore, provides relevant environmental education to

its entire workforce through on-site and classroom

training sessions. The process starts with training need

evaluation, where training requirements for different

levels of employees are established. Priority is upon

utilizing the in-house talent; however special workshops

and trainings are also arranged by hiring experts from

various fields.

Environmental Monitor ing

Environmental monitoring is carried out on several

aspects of the refinery operations and specifically on the

significant environmental impacts. Where applicable,

monitoring carried out is in accordance with the

requirements of the Environmental Protection Agency.

Effluent Water Monitor ing

Effluent water parameters are monitored on weekly

basis. All the components of the Effluent Water

Treatment Plant are evaluated on weekly basis as well as

on special requests to ensure performance.

Flue Gas Monitor ing

Flue gas analysis at each individual source is being

carried out on monthly basis and combustion efficiency

is monitored on regular basis. Any abnormality in the

results is addressed immediately for corrective and

preventive actions.

EMS FEATURES


ENVIRONMENTALREPORT

2006

Environmental Risk Management and

Emergency Preparedness

Emergency response procedures have been developed

for specific areas. ARL has established guide lines

pertaining to specific environmental aspects of its

Organization. These include oil spill control procedure

and bioremediation of hydrocarbon spills.

Environmental Studies

A number of environmental studies have been carried

out in order to respond to the issues of specific concern.

All new projects, including from construction of tanks to the acquisition of new units, are backed by

environmental studies at their feasibility stage. This

brings the environmental issues under consideration at

the very beginning of the project and provides a better

level of understanding to take them up. A few studies

included in the list are:

ARL has also undertaken a number of other assessments

to prepare environmental statements on the following:

Legal Compliance

ARL has always shown its full devotion for abiding by

all the applicable legal requirements. This goes from the

routine monitoring as required by the Environmental

Protection Act to carry out environmental studies for all

its new projects. Beyond this, a higher level of

management commitment is depicted by opting for

compliance up to the international standards as well

where possible. This includes the start of phase out of

the Ozone Depleting Substance (ODS) from all areas of use.

Hydrocarbon Emission Quantification Study and

Identification of Reduction/RemedialTechnologies

in One Refinery

Effluent system Evaluation and Up-gradation Study

Refinery Environmental Audit

Initial Environmental Examination for Attock Gen

Limited (150 MW Power Plant)

Environmental Impact Assessment for Refinery

Up-gradation Project

Environmental Impact Assessment for the Cross

Country Pipeline Project

29

ENVIRONMENTALREPORT

2006


Environmental objectives and targets are primarily derived from the Environmental Risk Assessments

where all the areas of “significant” rank are aimed for control. Goals are also set in conjunction with ARL's

commitment to continually improve its performance in the fields of occupational health, safety and

environment.

Status of Previous Year 's Targets

ENVIRONMENTAL OBJECTIVES AND TARGETS

Target Status

In progress

Achieved

Achieved

Achieved

Achieved

Achieved

Achieved

Achieved

Achieved

Achieved

Achieved

Achieved

Achieved

1. Training of the Operational Safety Program implementation task force

2. Technical and commercial evaluation of the auditors against open bid

for qualification of the Effluent System Evaluation Study Project and

completion of the study

3. Consolidation of all HSE related legal requirements for each

individual section

4. In-house training for the Refinery staff on 6 topics to increase HSE

awareness

5. At least one technical training course for each HSE engineer

6. Establishing Action Item Data Base for follow up of progress on

action items/ recommendations

7. Development and approval of HSE Management Standards

8. Quantifying and benchmarking of ARL HSE Key Performance

Indicators

9. Reduction in trend of Total Accident/ Incident Frequency Rate

(TAIFR), Bowzer Fires and Injury Rate

10. Development of Spill prevention and Containment plan

11. HSE department to ensure through out the year that all

accidents/incidents are investigated and draft Detailed Investigation

Report published with in 7 working days of the incident/ accident

12. Visit of HSE personnel to other industries with renowned repute for

HSE performance to bring improvements in own systems

13. Development of Solid Waste Management Manual and bring about

improvement in management practices through implementation of best

practices

14. Event Celebration

World Day for Safety & Health at Work

International Day for Biological Diversity

World Environment Day

Safety Week

a.

b.

c.

d.

ENVIRONMENTALREPORT

2006

Target

1. Communication and implementation of the Spill Prevention, Control and Counter

measures Plan (SPCC)

2. Measures for reduction of Oil & Grease loads in effluents to ensure compliance with

National Environmental Quality Standards

3. Development and implementation of Hazard Communication Plan

4. Development and implementation of Action plan in follow up of Third Party Safety Audit

5. Development and implementation of Hearing Conservation Plan

6. Development and implementation of Safety Observation Card (SOC) system

7. Evaluation of the recommendations of Effluent System Evaluation study for completion of

all the in-house modifications/ up gradations including: (a) Oily water separation system for

Furnace Oil collection in Middle Tank Farm area, (b) Reuse of Boiler blow-down water,

(c) Management of spillages from Railway Furnace Filling Gantry

8. Implementation of the revised Incident Reporting and Investigation Procedure

9. Ensure that Emergency Routes are established from all Offices and Colony area

10. Incorporation of Consequence Analysis in Contingency/Emergency Response Plan

(CERP) for Refinery area.

11. Development and implementation of Safety /Cardinal Rules with Procedure, Rule and

Discipline (PRD) committee

12. Establishing of HSE related targets, objectives & Personal Safety Action Plan (PSAP) for

line management along with Key Performance Indicators for Area Safety In-charges

13. Event celebration:

World Day for Safety & Health at Work

International Day for Biological Diversity

World Environment Day

Safety Week

a.

b.

c.

d.

Targets for Year 2007

31

ENVIRONMENTALREPORT

2006

Effluent System Evaluation Study

One of the most significant environmental

impacts faced by ARL is of effluent water. A

number of issues needed to be addressed for their

proper evaluation and resolution. In view of the

same, ARL targeted a comprehensive Effluent

System Evaluation and Up-gradation Study for

both oily and non-oily streams from different

processing units and storage facilities. The scope

of the study included from complete evaluation

of the existing system to preliminary designs for

major up-gradation in the effluent and sewerage

systems. After receiving meaningful outcome of

the study, a schedule has been prepared for

stepwise improvements in the system.

Third Par ty Safety Audit

The Company arranged for a Safety Audit

through renowned consultant M/s Dupont to

ascertain the weaknesses and status of

compliances. Corrective measures wherever

required as identified in the Audit have been

listed to address them on priority basis.

Par ticipation in Annual Environment Excellence Award

ARL participated in Annual Environmental ExcellenceAward (AEEA) for the year 2006 and was one of the proud

recipients of the award. The award is instituted by National

Forum for Environment and Health (NFEH) and is given in recognition of making significant efforts towards

environmentally sustainable progress.

This was recently acknowledged by Prime Minister of Pakistan,

who met all recipients of this prestigious award at a Reception at

the PM Secretariat .

Event Celebration

A variety of events are organized by HSE Department as part of its awareness raising campaign amongst the workers. These,

in addition to the Quarterly HSE Newsletter, have helped not

only to disseminate information effectively at various levels of

workers but also proved to be an effective tool to communicate

management's message on the level of commitment required.

Major events celebrated in the last year include:

World Day for Safety & Health at Work, April 28th 2006 International Day for Biological Diversity, May 22nd 2006

World Environment Day, June 5th 2006 Safety Week, December 11-15th 2006

ENVIRONMENTALPERFORMANCE2006


ENVIRONMENTALREPORT

2006

33

Vehicle Emission

Monitor ing Through

Pakistan Environmental

Protection Agency

ARL took a bold initiative to

invite Pakistan Environmental

Protection Agency's

Environmental Monitoring

Team for emission monitoring

of its vehicles. ARL pool enlists

a total of 91 vehicles of various types. In a two step

testing, 100 % compliance was

achieved for all the vehicles.

Summary of the analysis is

given on page 34.

Phase Out of Use of

Polythene Bags Both from

Refinery and ARL Fair

Pr ice Shop

A resolution passed at the

World Environment Day 2005

led to the step wise phase out

of use of polythene bags from

ARL Fair Price Shop and

Refinery area. The practice was discontinued to contribute

towards minimizing the known

negative environmental impacts

of the shopping bags. As a

substitute, the Fair Price Shop

now uses paper bags and cotton

bags are being used inside the Refinery.

Revision of Solid WasteManagement Program

ARL has been working vigorously for improvements in its solid waste management program. At ARL, solid waste is categorized into Industrial and Municipal. Much improvement has been administered in the industrial solid waste management by adoptionof environment friendly techniques like recycling And bioremediation.

Dealing with the Municipal solid waste has

proved much more complex because of

involvement of a large number of

community groups.

ARL, as part of its corporate social

responsibility, has put in much efforts and

resources to overcome this. A trial solid waste management run was launched

for a period of three months, addressing the issue in an integrated hierarchy of waste management. The key learning from the trial run provided an opportunity

for improvement and revision of the solid

waste management program.

Housekeeping Awards

In order to enhance the overall house

keeping conditions, an in-house

housekeeping competition was initiated on quarterly basis. Sizable improvement Has been achieved over the period of time by motivated participation of various sections.

Protocols for Repor ting and

Investigation of EnvironmentRelated Incidents

A clear documented procedure has been

established for reporting and investigation

of all environment related incidents as part

of the overall HSE procedures.

ENVIRONMENTALREPORT

2006

COMPLIANCE TO NEQS

Summary of Vehicle Emission Analysis

Emission analyses of the ARL Pool vehicles were performed by Pakistan Environmental Protection Agency in two phases. Initial testing of 72 vehicles, by Pakistan Environmental Protection Agency, was done in the month of September and the next visit was paid in October to check the WARNED vehicles.

Fir st Visit September 2006

Total Number of ARL vehicles = 91Number of vehicles tested for emissions = 72Vehicles in compliance = 57Vehicles in non-compliance = 15Percentage in-compliance = 79Vehicles not available at site = 19

Second Visit October 2006

Number of vehicles tested on second visit = 16Vehicles in Compliance = 16Vehicles in non-compliance = 0Vehicles from previous test (non-compliance) = 11Vehicles PASSED from previous test = 11

OXIDES OF SULFUR

0

100

200

300

400

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

SO

x(m

g/N

m3)

NEQS limit = 1700

Stack Emissions

Gas used for firing in the Refinery operations is

hydrogen rich Mixed-Gas. Hydrogen gas, produced as a

byproduct of reforming operation, is mixed with small

proportions of High-Pressure gas from other refinery

operations and SNGPL supply to obtain the Mixed Gas.

After commissioning of the Reformer unit in 1999, all

the units are now using this hydrogen rich mixed gas for

which specially designed burners have been installed.

Furnace Oil supply is kept only as stand-by on all the

processing plants. The only unit operating on Low sulfur

Furnace Oil is Power Plant.

Following the switching of fuel to this hydrogen rich gas

mixture and strict monitoring on all the parameters,

significant control has been achieved on all the stack

emissions.


NEQS Limit

ENVIRONMENTALREPORT

2006

HYDROGEN SULPHIDE

0

5

10

15


H2S

(mg

/Nm

3)

OXIDES OF NITROGEN

0

200

400

600

800


NO

x(m

g/N

m3)

OXIDES OF CARBON

800

1000

CO

x(m

g/N

m3)

600

0

200

400


35

NEQS Limit

ENVIRONMENTALREPORT

2006


Effluent Water Analysis

One of the main objectives of the earlier mentioned Effluent System Evaluation Study was to address the concerns regarding effluent water parameters. The parameters on priority in this aspect include Chemical Oxygen Demand (COD), Total Suspended Solids (TSS) and Oil & Grease (O&G).

Main contribution of COD to the effluentstream is from the spent caustic release at the MEROX Naphtha and Kerosene Sweetening Units. The remedy has been discussed in detail in the Evaluation Study and in house working on lab-scale studies and acquisition of treatment unit is in progress.

Substantial work on the problem of O&G slippage, especially during rainy seasons, has helped to reduce the load in the final effluentstream. The exceeded values indicated in the graph for the month of January, March and July were recorded during abnormal flows contributed by heavy rains. For control, the task targeted in first step is complete segregation of storm water by diverting the natural contours and construction of new drain channels. For this, the Phase I tasks of repairs and construction for the budget year 2006-07 have been completed.


BIOCHEMICAL OXYGEN DEMAND (BOD)

0

10

20

30

40

50

60

70

80

90

BO

D(p

pm

)


0

100

200

300

400

500

600

700

CO

D(p

pm

)

CHEMICAL OXYGEN DEMAND (COD)

800

900


0

1

2

3

4

5

6

7

pH

Valu

e

8

9

10

11

pH

NEQS Limit

ENVIRONMENTALREPORT

2006

37


PHENOL

0

0.01

0.02

0.03

0.04

0.05

0.06

0.07

0.08

0.09

0.1

Ph

en

ol(p

pm

)


OIL & GREASE (O&G)

0

10

20

30

40

50

60

70

80

90

100

110

120

O&

G(p

pm

)


TOTAL SUSPENDED SOLIDS (TSS)

0

50

100

150

200

250

300

350

400

TS

S(p

pm

)

NEQS Limit

ENVIRONMENTALREPORT

2006

At ARL, we are committed to following the highest

standards of ethical business practices. Our actions are

governed by the values and principles that we share. We

have committed ourselves to conduct business in an

honest, ethical, transparent and legal manner.

ARL's compliance with the Good Business Practices is

evident from the following awards / recognitions

received in the year 2006:

Annual Environment Excellence Award by National

Forum for Environment & Health (NFEH)

Best Corporate Report Award (ICAP & ICMAP)

Special Merit Export Award by Federation of

Pakistan, Chambers of Commerce and Industries

Export Trophy Award from Rawalpindi Chamber

of Commerce & Industry (RCCI) and Federation

of Pakistan Chambers of Commerce & Industries

(FPCCI)

Corporate Excellence Award by Management

Association of Pakistan (MAP)

Also included in the list are:

2005 Corporate Excellence Award 2003, 2nd

position in Energy Sector

2005 Best Corporate Report Award 2004, 1st

position in Energy Sector

2005 Special Merit Export Award 2004 from

RCCI, 1st position

2004 Corporate Excellence Award 2002, 1st

position

2004 Best Corporate Report Award 2003,

2nd position in Energy Sector

2004 Export Trophy 2003 from Rawalpindi

Chamber of Commerce & Industry (RCCI),

1st position

2003 Best Corporate Report Award 2002,

1st position in Energy Sector

2003 Fourth Pakistan Industrial Fair,

1st position

ACHIEVEMENTS & HONORS


ENVIRONMENTALREPORT

2006

Management Standards’ Cer tifications

At ARL, certifications of the management standards are viewed as means for continual improvement rather than labels. These certified Management Systems have helped us as tools to manage our activities and facilities to ensure compliance with legal requirements and our HSEQ policy.

Among all the petrochemical plants of the country,ARL was the first to receive ISO 9001 certification in year 2001. In 2002, ARL obtained ISO 14001:1996, the standard for environmental management system. After revision of the standard in year 2004, the system was upgraded to meet the requirements and re-certification was achieved on ISO 14001:2004. Most recent of the achievements was OHSAS 18001 certification in December 2005.

A unique feature of all our management systems is that they were developed in-house, without hiring any consultants. This in-house development and implementation of the program helped not only to evolve a best-suited program as per requirements of the organization but also assisted in acquiring a better level of control in implementation and operation.

CERTIFICATIONS

39

ENVIRONMENTALREPORT

2006

ARL promotes sustainable community development as part of its core values to create the foundation for a more equitable, just, productive, competitive and knowledge-based environment. As a responsible corporate citizen, ARL believes in working as part of the community and has made sizeable contributions for projects in the field of environment, health, poverty alleviation, women's development, HRD, education and sports.

ARL's Corporate Social Responsibility (CSR) initiatives whether in the field of environment (National Cleaner Production Centre), health care (Attock Hospital (Pvt.) Limited), development of women skills, alleviation of poverty (Attock Sahara Foundation), or conservation of rich biodiversity (Morgah Biodiversity Park) are all sustainable in nature.

ARL is providing potable water to the surrounding villages of Morgah, Nai Abadi, KothaKalan, Jhamra, and welfare organizations like SOS village, Deaf & Dumb school, Fauji Foundation Hospital, other schools and mosques and thus providing lifeline to more than 25,000 people. We firmly believe in the promotion of sports for healthy development of community. ARLsponsors and supports various sports events and has excellent cricket, hockey, football, swimming, squash, gymnasium and tennis facilities most of which are also open to local area teams. In alignment with our core value of learning & innovation, we offer internship, apprenticeship, training programs, and study projects to students and fresh graduates and support to educational institutions in the vicinity. Merit scholarships are awarded to the employees' children from primary up to post graduation from the top rated institutions including GIK & LUMS. Punjab Workers Welfare Board is constructing twomodel schools for boys and girls at Morgah on the land donated by the Company.

ATTOCK HOSPITAL LIMITED

AHL is committed to provide high quality health care facilities to the sick people of Morgah and neighboring communities. Attock Hospital started as primary health care center for Attock Refinery Limited in 1930. It was upgraded and restructured as Attock Hospital (Pvt) Ltd. in 1998 with a concept to provide comprehensive and affordable health care facility to our corporate clients and to the relatively financially compromised community.

Attock Hospital (Pvt) Limited (AHL) is dedicated to the development of an integrated system of services. Theheart of philosophy is a holistic approach that concentrates on the biological, psychological and social aspects.

CORPORATE SOCIAL RESPONSIBILITY AND ARL


ENVIRONMENTALREPORT

2006

Registered under Section 42 of the CompaniesOrdinance, 1984

The establishment of National Cleaner Production Center Foundation (NCPC) is one of the contributions that demonstrates the commitment of ARL to the environment.

The National Cleaner Production Center, a center of excellence, aims to introduce and promote Cleaner Production techniques & processes for pollution prevention at source along with integrated waste management.

Cleaner Production provides an integrated preventive environmental strategy to processes in order to reduce risk to human and the environment. Through the CPprogram, NCPC is bridging the gap between competitive industrial production and environmental concerns. This initiative is the first of its kind in Pakistan with the aim of introducing Cleaner Production Technologies & Cleaner Products.

Main Objectives

The center was established with the following baseline objectives:

Activities

1. Environmental Studies Environmental Audits Energy Audit

Air Quality Impact Assessment Environmental Impact Assessment (EIA) Initial Environmental Examination (IEE)2. Analytical Services

Analysis of Waste Water & Flue GasAnalysis of Petroleum Products

3. Training on Cleaner Production Techniques4. Technical Assistance & Policy Advice5. Cleaner Production Demonstration Projects

B. IncinerationNCPC's three-chambered Incinerator is

providing services to many industries and hospitals. A recent advancement in this regard is start of services for construction of incinerators.

A. BioremediationBioremediation of oil spills and oily

sludge; for the oil refineries and oil companies, through application of microbes, to convert any contaminated soil into normal soil

Assist in establishment for sustainable pollution preventionPolicy support and production of Clean Fuels/Clean ProductsPromote cleaner production technologies for waste minimizationCapacity building at local level

NCPC FOUNDATION

41

NATIONALCLEANERPRODUCTIONCENTERFOUNDATION

ENVIRONMENTALREPORT

2006

Loss of biodiversity has now become quite a serious

issue for Pakistan. Both habitat loss and unsustainable

human activities have contributed to this loss.

Governmental resources in Pakistan like other

developing countries are limited and overstretched with

competing demands from various sector of development.

It is therefore imperative to generate other resources

particularly from the private sector through public-

private partnership.

Located in the north-west of Pakistan, Attock Refinery

Limited, in collaboration with the Government of

Pakistan (Economic Affairs Division) has established the

Morgah Biodiversity Park (MBP). The project was

funded by UNESCAP as a Pro Poor Public Private

Partnership (5Ps) project.

The concept of Biodiversity Conservation under Morgah

Biodiversity Project was initially started with a limited

objective of ex-situ conservation by construction of a

biodiversity park over a core area of 20 acres donated by

Attock Refinery Limited (ARL), the private sector

partner. As the ideas evolved, it was realized that there

would be a need of additional area to establish a reserve

bank. Hence, an additional eight acres were donated by

ARL. With its formal agreement to join the Project,

Pakistan Museum of Natural History assisted in the

technical design and zoning of the park. By

October/November, 2004, the initial plan of the Morgah

Biodiversity Park (MBP) was developed that comprised

of a nursery and botanical garden, an aviary, a butterfly

farm and a pond for local aquatic life and fisheries.

Project objectives:

Ex-situ and In-situ conservation of threatened

Flora & Fauna of the Potohar region

Creation of awareness and dissemination of

information on biodiversity conservation to muster

public participation in the conservation of biodiversity

Awareness of interrelationship between biodiversity

conservation and poverty reduction

Improvement of vegetation cover in the area

Poverty alleviation

Promotion of Public Private partnerships

Waste management through community participation

Research opportunities


MORGAH BIODIVERSITY PROJECT

ENVIRONMENTALREPORT

2006

The Park, inaugurated and opened for general public in

2005, has been a source of considerable interest for the

local communities, the schools and other educational

institutions. This Park has also value for researchers in

the field of biodiversity having a large number of species

grown at one place and is a source of education and

awareness of the indigenous species.

Unique Features:

Progress Evaluation

First Pro-Poor Public-Private Partnership in the Asia

and Pacific region.

Not like other amusement parks, it is basically for

conservation of indigenous species and has educational

importance, while additionally providing recreational

facilities to the local communities.

Only Indigenous plant species are being grown. Exotic

& Ornamental plant species discouraged to grow.

Phase I including lay out and infrastructure completed.

About 1500 students from 21 institutes and 19000

general visitors have visited the park since its

inauguration and visitors are increasing with the

passage of time

Monthly and Bi-annual passes are being issued to

the community people for enjoying maximum

recreational facility in off hours also. Free passes

are being issued to provide equal opportunities to

the less privileged.

Kerosene stoves have been provided to the local

community as alternate fuel source to tree vegetation.

300 valuable fruit plants, including Pomegranates

and Papaya, have been distributed in the local

communities.

Efforts being made to stop biodiversity degradation

in the periphery.

Several awareness sessions have been conducted

successfully in the community in collaboration with

Local Union Councils and local schools.

A seven days honeybee-farming training workshop

was organized as a first step towards launching of

pilot project of honey bee farming at MBP.

43

ENVIRONMENTALREPORT

2006

Skill Development

Vocational Courses Computer Training English Language & Cooking Classes Beautician Courses

Assistance to the Poor

Zakat Scheme Scholarships Dowry Fund Stove distribution

Medical Facilities Micro Credit Scheme and Cottage Industry

Attock Sahara Foundation conducts a Grand Fun Fair every year to generate funds for its operations. This Fun Fair provides healthy & Recreational opportunity to the families of twin cities of Rawalpindi/Islamabad. Thefunds generated through this Fun Fair are utilized in community based welfare projects.

Grand Fun Fair

Attock Sahara Foundation (ASF) is welfare based registered non-profit organization under section 8(1) of voluntary social welfare Agencies (Registration & Control) Ordinance 1961 Vide Government of Punjab, Directorate of Social Welfare. It is secular non-profit seeking organization striving for the betterment of community since its inception.

Welfare Services of ASF

For the development of socio-economic conditions of local community, ASF has always been pursuing its goals on forefront. ASF has mainly focused its attention on under-privileged segment and targeted problems related to Education, Skill Development for Self-Employment and promoting women folk. The activities of ASF can be split in to following headings:


ATTOCK SAHARA FOUNDATION

ENVIRONMENTALREPORT

2006

Refinery P.O. Morgah, Rawalpindi (Pakistan)Telephone: (92-51) 5487041-45, Fax: (92-51) 5487254

E-Mail: [email protected]

Attock Refinery LimitedARL

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