Contractor HSE Training

1. HSE Training Module for Work Managers Contractor HSE Training Released: 03/01/2013

2. Purpose of the Training Module Work managershave a key role to play in contractor work safety through: – the provision of skilled staff, – the provision of appropriate tools and equipment for work, – organization and direction, – control and intervention, and – responsibility for compliance with HSE policy. Therefore, they should have a comprehensive knowledge of: – personnel, material and organizational conditions of work, – HSE-related statutory provisions, – MOL’s relevant HSE regulations, – workflow coordination, – etc.

3. MOL-side Actors of Construction Works Branches that order development and maintenance work. Construction works are done off their premises. - Oil exploration and extraction - Production (Refineries and TVK) - Logistics (base sites, road and rail refueling stations) - Retail (filling stations) Branches Development projects MOL/TVK organization organizing and coordinating development projects. MOL-side contract administrator and project manager. Petrolszolg MOL subsidiary organizing, coordinating and partly implementing maintenance works. MOL-side contract administrator and project manager. MOL/TVK’s central HSE organization in charge of laying down HSE regulations, assisting contractors in the interpretation thereof and monitoring compliance. FF & EBK

4. Contractual HSE Requirements An independent annex that contains MOL’s HSE regulations, including - Legislative requirements, and - MOL regulations (may contain provisions that are even more stringent than legislative ones!) The work manager is required to become thoroughly aware of all requirements set out in the HSE Annex to the contract! General Contractor The General Contractor should attach the HSE Annex with its subcontract agreements! Subconttractor Subcontractor

5. Work Manager’s Responsibilities Following From the Health & Safety Act The H&S Act makes it the duty of employers to comply with the statutory requirements for safety at work without posing any hazard to human health, in accordance with the employees’ responsibilities (duties). Employers must bear the primary responsibility as they are required to provide all tools and means necessary for creating proper HSE conditions. While managing field work, the on-site management personnel should assume to some extent these responsibilities of the employer.

6. Requirements Set Out In the Health & Safety Plan Pursuant to Decree No. 4/2002 SzCsM-EüM, a Health & Safety Plan should be prepared for each building and construction project. If, according to MOL regulations, a particular job is also subject to the condition that an HSE Plan must be prepared for it, both plans should be included in a common document! The plan must be drawn up as early as in the design phase, and then regularly updated with changes that may occur in the subsequent construction phase. As to the content of the plan, the author should take due account of the relevant legislative requirements as well as the following aspects: • the course of work processes in time, • harmonization of concurrent works keeping their specific rules in mind, • identification of the activities that may be performed only one after the other, • determination of site and work-specific health & safety requirements in view of the specificities of the building site, and • identification of a set of specific measures aimed at eliminating hazards present at the building site.

7. Health & Safety Coordinator • Verifies the content of the H&S Plan and ensures compliance with the plan. • Coordinates the implementation of the general principles of prevention and safety at work. Pays special attention to identifying concurrent and strictly consecutive work phases. • Coordinates the anticipated implementation periods of various work phases or stages. • Liaises with employers working on the building site simultaneously or in turns in order to coordinate their activities. • In the event two or more contractors are working on a site, the H&S coordinator assumes some of the field work manager’s job tasks related to on-site coordination. It is the General Contractor’s duty and responsibility to appoint and employ a H&S coordinator.

8. Tasks and Responsibilities of the Work Manager (1) - Regularly makes sure that the working conditions comply with the relevant requirements, and the emplyees are familiar with, and observe, the regulations pertaining to them(both legislative provisions and MOL/TVK requirements); - Cooperates with the operator in issuing work permits and ensures full compliance with the special requirements set out in the permits; - Ensures that all work sites, tools and equipment comply with the relevant health & safety and fire protection requirements; - Ensures that employees acquire all work-related skills and knowledge and comply with the relevant regulations; and - Ensures that employees receive and use appropriate work and personal protective equipment that are replaced if necessary.

9. Tasks and Responsibilities of the Work Manager (2) - Maintains order and discipline in his area; - Responsible for the safety of machinery, equipment and tools, as well as for conducting periodic reviews and the availability of the supporting documentation on the site; - Ensures that Hungarian documents of machinery and equipment, technology descriptions and PPE items are kept available and accessible on the site, and are verifiably used as materials of training that all employees receive; and - Responsible for checking work sites and work processes so as to ensure that they permanently comply with health and safety requirements for work.

10. Tasks and Responsibilities of the Work Manager (3) - Arranges for the provision of drinking water and warm-up beverages as required and ensures that employees take the mandatory rest periods; - Responsible for the provision of all personal and material conditions for the availability of on-site first aid; and - Ensures that employees cease to work immediately in case of any serious and imminent threat to health and safety and leave for a safe place.

11. The Manner and Cases of Substituting the Work Manager The work manager may leave the work area only if absolutely necessary and for short periods only. If the work manager is temporarily leaving the working site, he must appoint an appropriate employee to work as a substitute(give him the armband) and make it known to the entire staff. The work manager is obliged to wear a red armband throughout the duration of the working time.

12. Liaison With MOL Representatives The work manager is required to ensure his permanent availability to MOL’s designated contact person. The operator’s area manager, the responsible project manager or the authorizing official issuing the work permit may work as an area contact person. The work manager is required to report to MOL’s contact person if: - MOL’s intervention or assistance is needed, - any danger or disorder is observed during work, - there is any change regarding those described in the work permit, and - any HSE event occurs.

13. HSE Plan Purpose: To ensure that the general contractor and/or subcontractor(s) in charge of construction reconsider the work processes ahead of them, the technology-specific circumstances and potential hazards for HSE-critical works, and assess resource intensity (work, personal protection and safety equipment) and personal competence requirements of the project. Author: The General Contractor or subcontractor performing work should prepare and submit the HSE Plan before starting their actual work. Approvers: The representative of the operator affected by the project and MOL FF&EBK’s competent expert.

14. Content Elements of the HSE Plan - Who will do exactly what by when? - What kind of work, protective and safety equipment will they use? - Who will manage work? - What individual steps will be taken to make up work as a whole? - What risks are identified in relation to each work process, and what measures are taken to reduce such risks (JSA)? Identification of the location and the parties involved Identification of work activities Tools and equipment Protective clothing and personal protective equipment Required qualifications (HSE competence) Boundaries of the working area Subcontractors’ management Supervision, controls Waste management Detailed work instruction that renders the entire work process transparent Risk analysis for workflow steps Risk reducing measures The work manager is required to become familiar with the content of the HSE Plan and ensure that all employees are aware of and understand the same!

15. Site Handover Procedure • Participants: • Operator’s representative or his/her substitute (authorizing official), • Contractor’s site manager or work manager (in charge of construction) • General Contractor’s (or Petrolszolg’s) site manager or representative, • MOL FF&EBK’s representative, • Project representative (for projects), • Contractor’s H&S coordinator (where appropriate). • Criteria: • Availability of the approved HSE Plan (required), • Working site prepared (delimited) by the operator, • Preliminary walkthrough of the working site. • Handover Protocol • A written document (with fixed format), • Valid when signed by all parties concerned, • Also designed to document the return of the site on completion of work and record HSE performance assessment results. The successful site handover procedure itself is not an authorization for starting work (a valid work permit is required).

16. Site Handover Procedure / Operator’s Tasks Operator’s Tasks: • Preparation of the work area involved / exploration, elimination and posting of all hazardous energies. • Is there any other prescheduled on-site work in addition to the activities related to the site handover procedure? If so, it should always be reported to the contractor by making an entry in the Handover Protocol. • Identification of the types of permits required for work and the persons (employee group) who are authorized to issue the permits identified. • Information (signals, assembly point, important telephone numbers, etc.) for emergencies. • Specification of what other tests and inspections (electrical/mechanical review, pressure test, etc.) must be carried out and documented to restart technology lines/machinery on completion of the job at issue. If, during the site handover procedure, such tests and inspections are specified, the relevant test reports must be available for the return of the site as restarting the technology lines/machinery is subject to the availability of the documentary evidence of tests. It is up to the Operator to specify what tests and inspections to conduct, and the (General) Contractor, implementing the job, is required to perform them. • Laying down traffic rules for the site. It should also be specified here where and under what conditions road vehicles and mobile machinery are allowed to stop (be parked) and perform any work. Road closures and the standard procedure for ordering closures should also be recorded in this section. • Determination of the locations for the installation of containers by the Contractor with details of the properly documented authorization of installation.

17. Site Handover Procedure / (General) Contractor’s Tasks (General) Contractor’s Tasks: • Statement as to the preparation and approval of the HSE Plan (when and by whom it was approved). Site handover is not allowed for lack of an approved HSE Plan! • Statement on the prospective subcontractors. • Statement as to whether the Contractor intends to install containers or mobile toilets on the site taken into its possession, and what purpose the containers are intended for (e.g. for use as warming shelters or stores). • Statement with the name of the contact person whom the Operator can liaise with and consult on work-related issues. • On completion of work, performance of the tests and inspections required by the Operator (electrical/mechanical reviews, pressure tests, etc.) for the return of the site, recording test and inspection results and handing over the report to the Operator.

18. Content of the Work Order Key content elements of the Work Order: SAP SM Order No.: relates to one job Order Number: Multiple orders can belong under a given SM number for various works Contractor Data Short name of the work ordered For a job to perform (a Work Permit to apply for), the Contractor must in possession of a valid Work Order

19. ”Assignment” Form Statement on: • proper staff qualifications, • the suitability of tools and equipment. • Issued and signed by the employer • Brought to the site by the work manager • So many employers, so many ”mandates” • Required for all types of work • Issued for a particular job • Sequentially numbered • Duplicate • List of names and equipment (both can be completed with continuation sheets) Authorization: • to perform (hazardous) work activities

20. ”Work Permit” Form (1) It is the work manager’s duty to apply for a Work Permit if the following conditions are known and met: • Location and content of work • Proper staffing level and appropriate tools and equipment • Work Order number • Completed Assignment form Any work on the site is subject to authorization The Work Permit is issued by MOL/TVK’s area manager: • Type of work (normal, involving fire hazards, in confined spaces with entry, drive-in permit) • Hazards and risks • Relates tasks to perform (initial gas concentration measurement, compartmentation, delimitation, etc.) • Precautionary measures, protective equipment (permanent gas concentration measurement, etc.) Valid for a fixed term but can be extended The issuer of the permit and the work manager jointly interpret the content of the Work Permit.

21. ”Work Permit” Form (2) The permit issuer may conduct site visits jointly with the work manager whenever he/she deems it necessary to interpret the conditions and requirements set out in the Work Permit. The work manager takes over the Work Permit and proceeds as follows: - Ensures that the conditions and requirements set out in the Work Permit are met, - Interprets the requirements specified in the Work Permit jointly with his/her subordinates (daily toolbox talks), - Expects the employees under his/her command to meet the requirements and monitors proper compliance, - Retains and keeps the Work Permit readily available at the working site, - Presents the Work Permit on request whenever an inspection is conducted. Any work on the site is subject to authorization Not just a piece of paper – never work without it!

22. ”Work Permit” Form (3) For normal work For work involving fire hazards In such cases, the issue of the Work Permit is always preceded by an initial gas concentration measurement by MOL/TVK. The permit may be granted only if the measured gas concentration is below the limit value. For work in confined spaces For driving in

24. HSE High Risk Work Activities - List Work involving fire hazards Work at height Work in confined spaces Detailed rules for these work activities are set forth in relevant legislation, and also form part of MOL’s training program. Critical mechanical lifting Earthwork Opening containers of hazardous substances Chemical cleaning High-pressure (300 bar) cleaning, abrasive blasting

25. Lifting Operations I • The lifting equipment operator may only use lifting equipment and lifting accessories that have: • OHS compliance certificates, • OHS commissioning licenses (issued by the operator), • Installation specifications (plans) for installable lifting machinery, • Operating instructions in Hungarian, • Load diagrams (loadability for boom outreach), • Lifting machine logs (kept regularly) as a documentary evidence of regular maintenance, • Documented periodic reviews (valid till the completion date of contract work): • Shift test (documented by the operator in the lifting machine log), • Structural inspection (at regular intervalsaccording to the industrial group number), • Overhaul inspection at regular intervalsaccording to the industrial group number), and • Safety review (every 5 years). • Lifting equipment must be operated only by personnel: • authorized to operate this type of equipment by the employer in writing, • holding valid statutory hoisting machine operator license (light or heavy machine operator license) and passed a type exam, and • found medically fit.

26. Lifting Operations II (Lifting Plan) • What should be included in the Lifting Plan? • Identification of the lifting equipment, • Rated loads specified for various boom radiuses and inclination angles (load diagram), • Load lifter attachments used, • Weight of the load to be lifted, • Representation of the load path, • Method of using outrigger stabilizers, additional safety measures, • Identification of staff members participating in the lifting operation (slinger, signaller), • Demarcation of the area of crane operation, method of delineation. • When to prepare a Lifting Plan? • Multiple cranes operating within each other’s radius of action, • Combined lifting using multiple cranes, • Use of lifting beam or lifting frame, • Lifting of persons during crane operation, • The load to be lifted exceeds 65% of the rated load • Employees working in the immediate vicinity of the suspended load, • Lifting near or above transmission lines or inhabited buildings (structures falling within the crane’s radius of action. Prepared by the company performing the lifting!!!!

27. Lifting Operations III • DO NOT stay within the radius of action of the lifting equipment and DO NOT walk or work under a suspended load while a lifting operation is in progress! • The possibility of communication between staff members involved in a lifting operation should be continuously provided throughout the operation. It is the duty and responsibility of the company in charge of the lifting operations to provide appropriate means of communication. • Unauthorized access to the working site affected by the lifting operation should be prevented by fencing or personal supervision (it is a task of the company responsible for the lifting operations). • Lifting machinery should be installed on firm ground (mobile cranes stabilized by outriggers) against tipping or accidental displacement. The load bearing capacity of the soil should be sufficient to support the combined load made up of the machine’s dead weight and the weight of the suspended load. • Each staff member who works as a slinger must have taken a slinger course with an exam that is still valid. • If the lifting machine operator does not have clear visibility of the lifting path, a banksman should be appointed. • The use of a banksman is absolutely necessary for combined lifting operations using multiple lifting equipment even if the lifting path is clearly visible for the crane operators. • Always use lifting machinery with load capacity corresponding to the weight of the load to be lifted. DO NOT overload the lifting equipment during the lifting operation (deviate from boom radius-related load ratings) (if the crane is not equipped with overload protection). • The lifting path and the place of landing should be cleared of any obstacles. • Accidental or unauthorized use of lifting equipment should be excluded. DO NOT leave the ignition key in an unattended, out-of-uselifting equipment! • The presence of a staff of at least 2 is required for a lifting operation. One of them is the lifting machine operator, while the other one may as well be a MOL employee. However, for such a lineup, he must be present in the area of lifting throughout the lifting operation.

28. Work In Confined Spaces I • Pre-entry Tasks: • Exclusion, elimination and posting of hazardous substances and energies (if possible), • Preparation of an HSE Plan (a duty of those responsible for working in the confined space), • Site handover procedure, • Preliminary atmospheric measurement (where hazardous gases and vapors are expected to appear, or oxygen deficiency may occur), • Issue of the Work Permit (the Operator should be authorized to issue entry permits), • ”Assignment” for the employees who are responsible for working in a confined space (their employer will issue it for the entry). • Any activity that can be done by leaning inside or entering equipment or confined spaces not specifically designed for human habitation is deemed to be a work activity in confined spaces with entry. Such spaces include among others: • Tanks, • Columns, • Elevator shafts, • Pits (e.g. water meter pits), • Sewers, • Boilers, • Trenches (from 1.2 m) • Confined spaces, etc.

29. Work In Confined Spaces II • Staff number needed for the entry • To be specified in the HSE Plan and Work Permit in view of the related hazards (CH contamination, type of the activity) and the relevant standard requirements. • Specification of the number of staff members who will enter the confined space by access points • Specification of the number of watchers by access points. • Protective and safetyequipmentrequiredforentry: • Protectiveclothing (withtheprotectivecapabilitiesspecifiedinthe permit), • Protectivefootwear (ankleshoes, boots, highboots), • Personalatmosphericmeter (ifincludedinthe permit), • Supplied air respiratorsincase of theimminentdangerofinhalinghazardoussubstances, • Safetydevices (harness, signalingrope and lifeline), • Aidsusedtohelpaccesstodangerousspaces and workinthem (e.g. ladders, scaffold and alpinedevices).

30. Work In Confined Spaces III • Personal Criteria • Personal criteria for working in confined spaces: • Turned 18, • Mental and physical fitness for entry into confined spaces, external supervision and rescue work if necessary, • Documented periodic medical tests proving fitness for a particular job (e.g. for cleaning tanks), • Appropriate professional qualifications and experience for the job (e.g. tank inspector), • Participation in the required in-house HSE training course, with successful HSE exam, • A staff of at least three (3). Continuous concentration measurements in atmospheric air during work in confined spaces (if specified in the permit)

31. Work Involving Fire Hazards I • Any activity that poses ignition hazards (e.g. by ignition temperature, generation of sparks or flames) to substances in the environment and technologies is deemed to involve fire hazards. • They include e.g.: • Welding • Flame cutting • Soldering • Use of quick cutters and angle grinders (flex), • Any work involving open flames, etc. • A work permit issued for activities involving fire hazards does not lift the ban on smoking!

32. Work Involving Fire Hazards II • Written assignment for a particular job from the responsible workplace manager of the employee/personnel in charge of work involving fire hazards, • Meeting personal criteria • Turned 18, • Mental and physical fitness for the job, • Valid medical fitness certificate, • Appropriate professional qualifications for the job (e.g. certified welder for welding works), • Passed fire safety exam (corresponding to the type of work as provided for by law), • Taking an on-site HSE course that covers a particular plant area, • Preliminary concentration measurements in atmospheric air (only in areas with CH contamination), • Availability of personal gas detector for continuous atmospheric measurements (in case of activities involving fire hazards, continuous gas concentration measurements are required only on premises working with CHs – the measured values may not exceed the suspension limit), • A staff of at least 2 (hazardous work that may not be performed alone – a watcher is required who can intervene if necessary and help in rescue operations), • An HSE Plan for concurrent parallel activities involving fire hazards, which contains a risk analysis for the activities, • At least 1 fire extinguisher in good repair verified by regular inspections (the number and type of fire extinguishers should be determined in view of the intensity and features of potential fires assumed to break out at the work area as a result of on-site work activities).

33. Work Involving Fire Hazards III • Onlyproperlyauthorizedofficialshavethe right toissuepermits (forworkactivitiesinvolvingfirehazards). • Allcombustiblematerials must be removedfromthephysicalproximity (within a radius of 10 m) of theworkactivitiesinvolvingfirehazards. • Whenworkingin a CHarea, everyseweropening and shaftmanholeonthe site and within a radius of plus 20 m should be coveredwith a gastightcover (10 cm layer of sand and canvas). • Workshould be discontinuediftheflammablegasconcentrationexceeds20% of thelowerexplosion limit (LEL) inopenspaces and buildingsfor human habitationor5% LEL inconfinedspaces, i.e. tanksorshafts. • Intheevent of doinganyworkatheightinvolvingfirehazards (e.g. withsparkgeneration), specialattentionshould be paidtothepremises and workingareassituatedbelow. • Immediatelybefore starting hot workswithopenflames and exposed arc(welding, flamecutting, etc.), smoke, flameorheatdetectorsinstalledwithinthearea of actionofsuchwork (inrooms and structures) can be switchedofftoavoidfalsealarmsfortheduration of theworkactivitiesatissuewiththepermissionoftheareaoperator. • On completion of the work activity, the permit issuer must ensure that the protection system (smoke, flame or heat detectors) is switched back again once it has been deenergized..

34. Work At Height I • Any activity where the working level is located at least 2 meters or more above ground, and there is no fixed protection against fall from height (e.g. at building sites, at least a toeboard, a center board and a handrail or an equivalent solution must be provided) is deemed to be work at height. Collective protection should be preferred over individual one!

35. Work At Height II • When working at height, access to the place of work and work itself can be difficult and dangerous, so the following requirements must be strictly observed: • As far as possible, the job is to be performed from a fixed platform (installed work station) where the employee is protected from falling down by an at least 1 m high double-row railing. • For lack of an installed work station, the following options are available: • Construction of a standard scaffold (standard walking surface and double-row handrail with toeboard) where both the access path to the work area and the place of work are safe for climbing and working, • Use of ladders to access the working level and perform short-duration routine tasks (using simple and light tools, e.g. screwdriver) up to a height of 2m, and • Use of personal fall protection equipment. When opting for the use of individual protective equipment, full body harnesses should always be worn as mandatory equipment. The method of connecting the harness to the anchor point is to be chosen according to the type of work. This can be done using a positioning Y rope lanyard or a fall arrest fastened to an overhead anchor point or ropeway. In selecting the personal protective equipment for working at height, the typical features of the place of work should always be taken into account.DO NOT use work safety belt as fall protection equipment!

36. Work At Height III • In the event where working from an elevated place over 2m is only possible by tearing down safety structures (handrails) or by bending over them, the use of fall protection equipment (full body harness and Y rope lanyard or fall arrest equipment) is an absolute must. • The anchor point should be selected so as to ensure that its rated load bearing capacity is at least 1000 kg, and is located over the employee. It is the task of the person directly supervising work to select the anchorage points by providing information to, and in consultation with, the operator. • In selecting the proper fall arrest equipment, attention should be paid to the height of the working level and the point of anchorage as compared to the ground level (or the position of the structures below it) in order to ensure that the arrest can stop employee’s fall before reaching the ground, with no injury to him. • Only standard ropes (e.g. Y rope lanyards) can be used to fasten the full body harness attachment point (front or rear) to the anchor point above it. DO NOT use non-certified ropes for this purpose. • Working at height is considered a dangerous activity and, therefore, should be carried out by at least 2 people. They must be medically fit (for working at height) and properly trained in the use of the protective equipment. • DO NOT use protective equipment when damaged or not subjected to periodic inspections!

37. Work At Height IV • When working at height, tools, parts and machinery must be placed (secured for machines) so that they do not pose additional risk by falling downto the work area below. Walking or driving under the elevated work area should be restricted by work organization measures or completely prohibited in such case. If machinery or equipment are installed below the working level, they must be protected from falling objects. • It is the duty and responsibility of the company that performs work to select appropriate personal protective equipment for working at height, make them available to the employees, carry out their periodic inspections andconduct documented training in their proper use.Certification documents of the protective equipment as well as documents proving the implementation of periodic inspections should be kept readily available for any inspection at the place of work. • In the event of using ladders, always maintain 3 points of contactwhen climbing up and down. DO NOT carry tools or materials in your hands when climbing a ladder. Instead, use for this purpose a tool bag or a special case. • Erect scaffolds and ladders on afirm and level plane, and secure them against tipping if necessary.

38. Scaffold Erection I • Construction scaffoldings should be designed, erected and inspected, as well as HSE commissioning activities concerning scaffolds performed in full conformity with the provisions of Decree No. 4/2002 SzCsM-EüM and other related legislation, also in view of the requirements set out in the applicable Hungarian standards. • Every scaffold should be properly designed, erected and maintained so as to prevent collapse or accidental displacement when properly used. • The working platforms, gangways and stairways of scaffolds should be of such dimensions and so constructed and guarded as to protect employees and others within the range of work operations against falling or being endangered by falling objects. • All working levels, passageways and gangways above 2m heightshould be equipped with guardrails (1m high triple rails with less than 0.3m spacing, toeboard, center board and handrail, or other equivalent solution). • Dimensions, shape and arrangement of scaffolds • must correspond to the type of work to do, • should comply with the design load (max. load capacity should be posted), and • must allow employees to work and move in safety.

39. Scaffold Erection II • A Scaffold Plan should be prepared for every scaffold with a load capacity in excess of 2000 N/m2 or height over 6m. For smaller scaffolds, structural outline drawings are required. • For the issue of permits for working on installed scaffolds, the scaffold plan, structural outline drawings and the written documentation of the preliminary inspection should always be made available to the permit issuer (operator) for inspection. The issue of a work permit is strictly subject to the availability of the above-mentioned documents. • Before putting into use, mobile scaffoldings (running on wheels) should be secured against displacement (with brake). • When moving a mobile scaffold, pay attention to the following aspects: • DO NOT move the scaffold with employees on board of it! • The planned route of scaffold movement should be secured in advance (in terms of height, any overhead electrical line, etc.). If necessary, reduce the height of the scaffold. • Check the path of scaffold movement for any overhead line hanging in, technology component and the smoothness of the path. • For custom-built scaffolds, every second story should be anchored to a fixed technology point against tipping. Only mechanisms rated for both tensile and compressive strains should be used for anchorage. DO NOT use soft iron wire for anchoring a scaffold. • Scaffold platforms and decking may not be less than 0.6m in width. Platform width should be adapted to the spreadwidth corresponding to scaffold frame. Scaffolds are to be stiffened in two planes perpendicular to one another (by incorporating cross members, i.e. Andrew’s crosses). • To climb up and down the scaffold, use special access ladders or stairs that must be firmly secured against falling down. Do not use the stiffeners to access the working level on the scaffold. • Scaffold erection requires a staff of at least 2.

40. Scaffold Erection III • An inspection should check scaffolding for: –Compliance with scaffold plans, –Stability of structural components (e.g. foundation, extensions, stiffening reinforcement and anchorage), and –Safety equipment (e.g. gangways, handrails, toeboards, load capacity, other labeling, fire protection, lightning protection, lighting). • Scaffolding must be inspected by a competent person (an authorized employee of the company erecting the scaffold): • Before it is put into use, • After any structural alterations or withdrawal from use, • After bad weather (storm), earthquake, etc., • A written report must be prepared to document the inspection and its results. The report should also contain the requirements the scaffold has been tested to and a statement as to the scaffold’s compliance with relevant standard requirements and fitness for use, • After any accident or other event likely to have affected its structural strength or stability, • After extended periods of interruption in use (after 1 week, a repeated inspection and documentation is required).

41. Earthworks I • Earthworks are manual or motorized activities intended to disturb and expose land surfaces on a scale from shallow manual digging to major complex excavations, using machinery, for buildings and large structures. Large-scale earthworks can pose significant risks (e.g. landslides, cave-in accidents or submersion in swampy areas, falling down, dangerous trench work, etc.).

42. Earthworks II • The contractor should maintain the following minimum staffing level while performing earthworks: • An HSE Plan should be prepared for each trench excavation of 1.2m or deeper during earthworks (manual or mechanical) on MOL premises, and the work area made available, within the framework of a site handover procedure, to the contractor in a documented manner before starting work. • For trenches deeper than 1.2m, requirements for entry into confined spaces should also be taken into account. • In the preparation of an HSE Plan, the following issues should also be addressed: • method of excavating the trench (manual/mechanical), • means of propping and shoring, • staffing requirements, • protective and safety equipment, • routing of utility and other lines in the area (electricity, products, etc.) and requirements for their elimination. • All employees concerned should be made familiar with the content of the HSE Plan in a documented manner.

43. Earthworks III • Earthworks in progress: • For open trench depths ranging between 0.25 and 1.25m, awarning tape(employing a two-tone pattern of alternating red-white or yellow-black stripes) should be affixed at 1m height to warn those approaching to the trench of the possible hazard. • For an open trench deeper than 1.25m, guardrails (min. 1 m high fixed guards e.g. of wooden plank structure designed to physically prevent falls into the trench) should be erected around the trench, at a distance of 1m from its edges. • A Construction Log should be maintained while earthworks are in progress. The earthwork contractor is responsible for keeping the log. • A Work Permit for earthworks may be issued only if: • the HSE Plan is completed and approved (for 1.2m or deeper trenches), • the site is handed over to the contractor (for 1.2m or deeper trenches), • the staff is available for the earthworks in the required number, • hazardous energy source locations (underground pipelines, power lines and control cables) on the area affected by earthworks are mapped and isolated if necessary, • the conditions of entry into confined spaces are met (exclusively for 1.2m or deeper manual excavations), and • calibrated instruments are available for the mandatory continuous measurement of atmospheric concentrations (continuous atmospheric measurements are not required in the only case where combustible gases are definitely not present on the site, and are not even expected to appear, e.g. for greenfield projects).

44. Earthworks (Mechanical) IV • It is prohibited to stay within the radius of operation of the earthmover or in the trench under excavation while mechanical earthworks are in progress. Accordingly, the following warning notice should be posted to both sides of the machine: ‘Danger!’ ‘Keep Away!’ • When mechanical excavation works are under way, the earthmover is not allowed to come too close to the edge of the trench being dug so that no trench slides or collapses occur and not to expose itself to the risk of falling into the trench. This distance can be reduced if trench shoring is designed to support the additional load exerted by the machine. • It is not allowed to install equipment and store heavy materials on the eroded banks of a trench. • The edge of a pit (trench) may be loaded within its eroded banks only if the trench shoring structure is designed and rated to support the additional load. • Once parked, an earthmover should be secured against accidental displacement before leaving it unattended. It must also be ensured that no unauthorized person can restart it (e.g. by taking the key out of the ignition). • No person other than the driver of the earthmover can be carried on board of the machine unless it has a standard seat therefor, which is properly fixed, and can provide adequate protection for the person sitting on it against falling off or down.

45. Earthworks (Mechanical) V • If, in the area affected by earthworks, any hazardous energy is expected to be present (e.g. power lines, control cables, product pipelines, etc.), they must be explored and mapped in advance and, if possible, eliminated. • No earthwork machine (including any of their accessories, e.g. shovel) may drive closer than 0.5 m to a crude oil or product pipeline. In such cases, exploration work should be continued by manual digging. • An overhead electrical line can be approached by an earthmover or any of its accessories (e.g. boom) only by ensuring that the following safety clearances are always kept: • If the safety clearances specified above cannot be maintained, the operator is required to take immediate measures in order to avoid the risk of electric shock. Such measures may include deenergization, line rerouting or work area demarcation.

46. Earthworks (Manual) VI • During manual earthworks, trenches should be constructed so that • the excavated soil is prevented from running back into the trench (by forming 0.5m wide berms), • trench sidewalls are secured against collapse and caving in (using appropriate shoring or sloping techniques), • trench workers can, in emergency, escape from the trench in safety under any circumstances (mostly using a ladder, which should remain in place throughout the trenching work). • The safety features applicable in trenching work (sloping angles, shoring, stepwise sidewalls) should be specified in view of the mechanical features of the soil. For 0.8 m or deeper trenches, their use is obligatory. • Strutted trench • deepening of the trench should be followed with strutting as required by soil quality (at every 1m in cledgy soils and every 0.5m in fitchery soils), • The bottom width may not be less than 0.8m. • Use accommodation ladders, properly secured against displacement, for climbing down to/up from trenches to a depth of max. 5m. For trenches deeper than 5m, stairs should be constructed. An accommodation ladder mounted in a trench should be of sufficient length to extend above ground level by min. 1m, ensuring safety for climbing up and down.

47. Earthwork (Manual) VII • For work trenches and pits, passageways should be constructed at every 200 meters as a minimum. The passageways should be at least 0.6 m in width. Passageways constructed over work trenches deeper than 1 m must be equipped with double-row handrails on both sides. • Work pits located next to existing building foundations should be dug only to a depth that does not adversely affect the stability of the existing building or structure.

48. Appropriate staff number / planning Proper identification of job-related work processes Health and medical fitness Taking account of work loads, according to the relevant legislation, that require prohibition as being potentially harmful for the health of vulnerable groups (juveniles, women, etc.). Availability of activity-related special medical certificates (e.g. if an employee is fit for wearing respirator). Labor demand assigned to work processes Identification of qualifications, skills, capabilities and experience for work Mandatory fire safety exam Mandatory mine safety exam Basic and site-specific training for contractors with validity on MOL Group premises Work manager training with validity on MOL Group premises The key role of risk analyses Identification of hazardous activities Jobs that may not be performed alone Difficult & extraordinary conditions Provision of supervision for e.g. work in confined spaces Provision of rest times Providing Adequate Labor(Qualifications & Staff Number) The work manager is responsible for ensuring that each and every work activity is done by a person qualified and authorized to do it.

49. Decree No. 16/2008 (VIII. 30.) NFGM on Safety Requirements For and Compliance Certification of Machinery Proper identification of job-related work processes Transportation and handling Warehousing, storage and preservation Transformation of materials: processing machinery Energy conversion: machines and power engines Transformation of information: PCs, control & management systems The key role of risk analyses Obligatory compliance with legislative requirements for the safe use of machinery! EC declaration of conformity for machinery EC type examination certificates EC conformity marking Essential health and safety requirements Commissioning of hazardous work equipment Periodic safety reviews Technology specifications, work instructions and activity rules Hungarian operational documentation for the safe use of machinery Provision of Machinery & Equipment In Proper Quantity and Quality (1)

50. Provision of Machinery & Equipment In Proper Quantity and Quality (2) • Keeping machinery and work equipment in appropriate technical condition • Technical condition and periodic reviews of hazardous machinery and equipment • Inspection of electrical equipment for shock protection • Control inspections of low-voltage and power current electrical equipment for protection against indirect contact (shock protection), checks of equipment by fitters, review of compliance with standards (protection switches, power tools and other electrical equipment) • Making sure that a crane book is available for the lifting machines and is kept on a shift basis • Periodic review of lifting equipment • Use of explosion-proof equipment if appropriate ”Before using a machine or equipment made available to an employee, he/she is required to make sure that it is suitable for performing the work and does not pose any potential hazard.”