Saudi Aramco 7180 (5/89) G.I.

NUMBER

SAUDI ARABIAN OIL COMPANY (Saudi Aramco) GENERAL INSTRUCTION MANUAL

ISSUING ORG. SUBJECT:

2.104
ISSUE DATE

Approved

REPLACES

TERMINAL DEPARTMENT LEAK AND SPILL REPORTING - ARABIAN GULF

05/30/1995
APPROVAL

11/15/1991
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CONTENT:
SAUDI ARAMCO ENVIRONMENTAL POLICY: Saudi Aramco is committed to the prevention of harmful effects of oil pollution in the offshore and onshore environment in all areas of its operations. However, Saudi Aramco's policy in safeguarding the offshore and onshore environment is to ensure that all operating procedures, employees training and technical applications are aimed at preventing and/or minimizing the accidental leak and/or spillage of liquid hydrocarbon substance. Notwithstanding the above policy, should any leak or spillage occur, this General Instruction is to be fully complied with at all times. This General Instruction overrides any other General or Facility instruction and or directive as applied to the reporting, investigating and/or documenting of Leak and Oil Spills in the offshore environment. CONTENTS: This General Instruction describes the reporting, investigation and documentation requirements for any oil spill into the waters of the Arabian Gulf from a Saudi Aramco facility or a Saudi Aramco contractor, or from any vessel moored or moving in the Saudi Aramco Terminal operating and channel areas, or from any unknown source. It contains information on the following: 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Purpose Reasons for Reporting Definitions Reporting Responsibilities Investigation Responsibilities Documentation Requirements Distribution Financial Letter of Guarantee Treasurers Banking, Credit & Collection Div. Reporting of Incidents

APPENDICES: Oil Spill Report Form (OSRF) Financial Letters of Guarantee (Attachments I & II) Leak and Spill Report Offshore SA 5046

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Saudi Aramco 7180 (5/89) G.I. NUMBER

SAUDI ARABIAN OIL COMPANY (Saudi Aramco) GENERAL INSTRUCTION MANUAL

ISSUING ORG. SUBJECT:

2.104
ISSUE DATE

Approved

REPLACES

TERMINAL DEPARTMENT LEAK AND SPILL REPORTING - ARABIAN GULF

05/30/1995
APPROVAL

11/15/1991
PAGE NUMBER

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NOTE: (1) It is important to immediately inform the Executive Management of any oil spill that may have an impact on the vital Saudi Arabian Government or Saudi Aramco Facilities or an environmentally sensitive area. In the case of simultaneous offshore oil spills with offshore disaster and only limited resources available, the offshore disaster will take priority over the oil spill for accessing those resources. As soon as safely possible following the sighting of an oil spill from any source, the source of the spill should be secured.

(2)

(3)

1.0

PURPOSE:
The purpose of this instruction is to outline the procedures for reporting, investigating and documenting oil leaks and spills which result from a discharge of oil into the waters of the Arabian Gulf. In addition, this instruction defines leaks/spills and the person responsible for preparing written documentation of the incident. The notification of a spill shall generate the spill response activity described in G. I. 2.400, Offshore Oil Spill Contingency Plan," Arabian Gulf.

2.0

REASONS FOR REPORTING

Fulfill the Company's obligation with respect to it's Environmental Conservation Policy. Bring potentially dangerous situations to the attention of Management. Protect environmentally sensitive areas, and vital Saudi Aramco/Government facilities. Initiate action to contain, correct and cleanup leaks and spills. Fulfill the Companys obligations to report spills to the Government of Saudi Arabia. Investigate the cause of a spill and take the corrective action to prevent the re-occurrence of similar or repeated incidents. Provide support for claim actions and the recovery of cleanup costs from third parties causing the spill. Provide information that can serve as the basis for measuring progress in improving methods and equipment for the prevention and the clean up of leaks and spills. Obtain required financial guarantees/letters of undertaking from vessels insurer/owner and request detentions of a vessel in Port until satisfactory financial guarantees are provided.

3.0

DEFINITIONS
Oil: Offshore: "Liquid Hydrocarbon Substance The waters of the Arabian Gulf up to and including beaches at the spring high tide mark.

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Saudi Aramco 7180 (5/89) G.I. NUMBER

SAUDI ARABIAN OIL COMPANY (Saudi Aramco) GENERAL INSTRUCTION MANUAL

ISSUING ORG. SUBJECT:

2.104
ISSUE DATE

Approved

REPLACES

TERMINAL DEPARTMENT LEAK AND SPILL REPORTING - ARABIAN GULF

05/30/1995
APPROVAL

11/15/1991
PAGE NUMBER

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Leak or Spill: Any known release of oil into the waters of the Arabian Gulf and/or any oil of unknown source in the waters of the Arabian Gulf.

4.0

REPORTING RESPONSIBILITIES:
4.1 Persons observing leak/ spill shall: Report the spill by the most rapid means available to the Ras Tanura Port Control Center (RTPCC), Tankship Communications Operator: Fax: 678-1089, Tel: 678-1279, 678-1495, 673-1735 or VHF Radio Marine Channels 16, 10, 13, 14 & 67 Spill Reports also may be passed through Tanajib Port Control, Tel: 378-9613, Fax: 378-9355; Abu Ali Pier, Tel: 678-2329, Fax: 678-2155; West Pier Shift Coordinator, Tel: 678-1475, Fax: 678-1779. 4.1.1 Persons reporting the spill should provide the following information:

- Name of Person Reporting and/or Observing the Spill - Date and Time of Observation - Badge Number - Contact Telephone Number - Location of Spill - Size (approximate length and width) and Color - Origin of Spill, if known - Weather Conditions, Wind Speed and Direction, Visibility and Sea Conditions - Action Being Taken 4.2 Ras Tanura Tankship Communication Operator shall: 4.2.1 4.2.2 4.2.3 4.2.4 4.2.5 Record the spill information, as given by the spill observer, on the "Oil Spill Report Form" (OSRF). Immediately inform the Regional Oil Spill Coordinator (ROSC). Complete the OSRF with other relevant information required on the form including the OSRF Number assigned by the ROSC. Immediately notify the Ras Tanura Senior Harbor Pilot by transferring the OSRF to him. After the Oil Spill Report Form (OSRF) has been reviewed by the Senior Harbor Pilot distribute it as follows:

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Saudi Aramco 7180 (5/89) G.I. NUMBER

SAUDI ARABIAN OIL COMPANY (Saudi Aramco) GENERAL INSTRUCTION MANUAL

ISSUING ORG. SUBJECT:

2.104
ISSUE DATE

Approved

REPLACES

TERMINAL DEPARTMENT LEAK AND SPILL REPORTING - ARABIAN GULF

05/30/1995
APPROVAL

11/15/1991
PAGE NUMBER

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I) II) III) IV) 4.3

Regional Oil Spill Coordinator Marine Shift Coordinator Terminal Shift Superintendent Northern Area Loss Prevention

The Ras Tanura Senior Harbor Pilot shall: 4.3.1 4.3.2 4.3.3 Immediately review the OSRF for contents and clarity of information. Consult with the ROSC for an immediate response in respect to cleanup or containment operations. In the event of a known leak/spill, originating from a known, third party tanker, where a Special Project Number has been assigned for clean-up action/containment, immediately notify the Master and Local Agent of the vessel of the requirement for acceptable financial guarantees/letters of undertaking from both the vessels insurers P&I Club and the vessels owner/principal in respect of costs associated with such cleanup and or containment. The Master and Local Agent shall be notified that failure to provide this documentation will result in the vessel being held in Saudi Arabian waters until such time as the documents are received by Saudi Aramco.(See example wording, Attachment # I, and # II to this G. I.).

4.4

The Marine Shift Coordinator shall: 4.4.1 4.4.2 Enter the oil spill information in the Oil Spill Report Log. This log contain the information recorded on the Oil Spill Report, including the OSRF Number. Notify the Assistant Superintendent, Southern Area Support Boats Operations, or his alternate.

4.5

The Regional Oil Spill Coordinator shall: 4.5.1 4.5.2 After notification of an oil spill, assign an OSRF number to that spill incident. Inform the concerned Facility Superintendent, Shift Superintendent, Weekend Superintendent, or Affected Area Control Room of any oil discharge from his facility. It is the responsibility of the informed Superintendent to notify his immediate upper Management as he deems necessary, dependent upon the severity of the leak/spill. NOTE: The Superintendent (as noted in this section) will accompany the ROSC or his delegate on the first evaluation of the spill volume. Inform the Terminal Operations Manager of any spill and agree on an estimated spill volume prior to release of information to third parties. Notify the local Government Affairs Representative. Notify the Operations Managers whose facilities may be threatened by the spill. Notify the Global Oil Spill Coordinator when the ROSC deems it necessary.
NEW INSTRUCTION COMPLETE REVISION X 10

4.5.3 4.5.4 4.5.5 4.5.6

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Saudi Aramco 7180 (5/89) G.I. NUMBER

SAUDI ARABIAN OIL COMPANY (Saudi Aramco) GENERAL INSTRUCTION MANUAL

ISSUING ORG. SUBJECT:

2.104
ISSUE DATE

Approved

REPLACES

TERMINAL DEPARTMENT LEAK AND SPILL REPORTING - ARABIAN GULF

05/30/1995
APPROVAL

11/15/1991
PAGE NUMBER

SAA / ASA

OF

10

4.5.7

Notify the necessary members of the Oil Spill Response Team (OSRT). Generally, all members of the Oil Spill Response Team will be notified of a major oil spill. (Refer to G. I. 2.400 "Offshore Oil Spill Contingency Plan") Assume overall responsibility for activities related to the safe and efficient cleanup, restoration and documentation of any leak and/or spill as specified in the G. I. 2.400, and the Oil Spill Contingency Plan, Arabian Gulf.

4.5.8

4.6

The Terminal Operations Manager shall: 4.6.1 Confirm, in the case of major spills or spills that have a serious impact on Saudi Aramco operations, that the Executive Management has been briefed on the situation prior to notifying the Government Affairs Organization.

4.7

The Operating Department Superintendent or Shift Superintendent shall: 4.7.1 4.7.2 4.7.3 As safe as practical following an oil spill from one of his facilities, ensure that the source of the spill is secured. Immediately notify the Loss Prevention Duty Officer of all spills. Immediately notify the Oil and Gas Dispatcher at 874-6821, 874-6822 or 875-2137 for any spill that may curtail production of Terminal Operations.

4.8

The local Government Affairs shall: 4.8.1 4.8.2 4.8.3 Inform Saudi Aramco's Government Liaison Engineer. Inform Non Saudi Aramco Facility, if there is a potential risk of pollution to their facilities. Inform Sea Ports Authority (SEAPA) when the leak/spill is from a third party ship.

4.9

Government Liaison Engineer shall: 4.9.1 4.9.2 Insure that the appropriate Saudi Arab Government Ministries are notified as required by applicable departmental directives. The Oil Spill Committee shall be briefed by the Global Oil Spill Coordinator or in his absence by the ROSC as to the magnitude and extent of the spill. The magnitude of the spill shall be released by the Chairman of Oil Spill Committee or by the Manager of Terminal Operations to the Government Liaison Engineer.

5.0

INVESTIGATION PROCEDURES:
5.1 All leaks/spills shall be investigated. The investigation shall be carried out in a professional manner to the point that a report shall be developed. Included in the report is the reason for the leak/spill, the actions taken to mitigate damages as a consequence of the leak/spill. It is of

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Saudi Aramco 7180 (5/89) G.I. NUMBER

SAUDI ARABIAN OIL COMPANY (Saudi Aramco) GENERAL INSTRUCTION MANUAL

ISSUING ORG. SUBJECT:

2.104
ISSUE DATE

Approved

REPLACES

TERMINAL DEPARTMENT LEAK AND SPILL REPORTING - ARABIAN GULF

05/30/1995
APPROVAL

11/15/1991
PAGE NUMBER

SAA / ASA

OF

10

paramount importance that the investigative reports document all failures of procedures, materials and/or omissions of actions of individuals in order to prevent re-occurrence. 5.2 Leak/spills in excess of 10 barrels should be investigated by a committee consisting of at least: Superintendent/Shift Superintendent of Facility, ROSC/Regional Oil Spill Specialist (ROSS). One member with specialized knowledge of the facility concerned will be assigned by the Chairman of the Oil Spill Committee as deemed necessary. Leaks/spills in excess of 10 barrels resulting from a tanker will be investigated by representatives of the Tankship Pilotage Operations Unit, the Regional Oil Spill Coordination Unit, and the Tankship Technical Support Unit. The resultant investigative report will form part of the essential documentation procedures as outlined in Section 6 of this G. I. Unknown offshore spills will be investigated by ROSC/ROSS. Assistance may be required from other departments as deemed necessary.

5.3

5.4

5.5

6.0

DOCUMENTATION REQUIREMENTS:
6.1 ROSC will prepare Saudi Aramco Form 5046, Leak and Spill Report, for each Offshore Oil Spill Incident. Form A-5046 shall, in all cases, be initiated within one (1) working day of the date of the incident from the office of the ROSC as a by product of the Terminal Pollution Control Tracking System. It will carry the Oil Spill Reference Number and immediate details of the leak/spill incident as noted on the Oil Spill Report received from the Ras Tanura Port Control Center. ROSC will route the form SA-5046 through the Marine Pollution/Offshore Operations Division for completion of the section titled "Cleanup Operation" and for comments and signature. ROSC shall forward form SA-5046 to the Facility Superintendent/Investigating Committee for comments and attachment of the investigative report required under Section 5.4 of this G. I. The ROSC will review the incidents reports for leaks\spills of unknown source. The Port Captain will act as a facility superintendent for all unknown spills. SA-5046 will be routed through the Department Manager for his comments and signature prior to returning the completed document to the ROSCs office for computer update, signature, and final distribution.

6.2

6.3

6.4

6.5

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Saudi Aramco 7180 (5/89) G.I. NUMBER

SAUDI ARABIAN OIL COMPANY (Saudi Aramco) GENERAL INSTRUCTION MANUAL

ISSUING ORG. SUBJECT:

2.104
ISSUE DATE

Approved

REPLACES

TERMINAL DEPARTMENT LEAK AND SPILL REPORTING - ARABIAN GULF

05/30/1995
APPROVAL

11/15/1991
PAGE NUMBER

SAA / ASA

OF

10

7.0

DISTRIBUTION
Distribute copies of Form SA-5046 Leak and/or Spill Report is as follows: - Chief Environmental Affairs - Facility Superintendent - Government Liaison Engineer - Finance / Insurance and Claims Division - Area Safety Representative. - Superintendent Marine Offshore Operations/ Pollution Control Unit - Marine Representative if offtaker vessel is involved in a spill - Deputy Manager, Saudi Aramco Affairs, Northern Area

8.0

FINANCIAL LETTER OF GUARANTEE

8.1 The original Financial Letter of Guarantee as produced by the vessel's insurers, P&I Club, must be delivered to the Ras Tanura Shipping Accounting Unit, Ras Tanura Accounting Division by the vessel's agent. The Shift Supervisor, Shipping Accounting, will, prior to officially receiving the original signed "Financial Letter of Guarantee" on behalf of Treasurers Banking, Credit and Collection Division, transmit a copy by facsimile machine to the duty Senior Harbor Pilot for his immediate review. The on duty Senior Harbor Pilot will review the facsimile copy of the Letter of Guarantee from the Shift Supervisor, "Shipping Accounting", to ensure compliance with the wording as based upon the Saudi Aramco form. Alternative wording will be transmitted by the Senior Harbor Pilot to the Law Department for their concurrence prior to allowing the vessel to sail. The Tankship Technical Support Unit will inform the Banking, Credit & Collections when the original Financial Guarantee Letter of Undertaking as outlined in 8.1 above, has not been delivered to the Ras Tanura Shipping Accounting Unit. Prior to the intended departure from the berth, request Government Affairs, through the Port Captain, for assistance in holding the vessel causing the leak/spill.

8.2

8.3

8.4

9.0

TREASURER'S BANKING, CREDIT and COLLECTION DIVISION

9.1 Will arrange for the collection of the original financial guarantee and letter of undertaking from Ras Tanura Shipping Accounting Unit.

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Saudi Aramco 7180 (5/89) G.I. NUMBER

SAUDI ARABIAN OIL COMPANY (Saudi Aramco) GENERAL INSTRUCTION MANUAL

ISSUING ORG. SUBJECT:

2.104
ISSUE DATE

Approved

REPLACES

TERMINAL DEPARTMENT LEAK AND SPILL REPORTING - ARABIAN GULF

05/30/1995
APPROVAL

11/15/1991
PAGE NUMBER

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OF

10

9.2

Will hold the original financial guarantee and letter of undertaking until payment of claim is received.

10.0 REPORTING OF INCIDENTS

10.1 Any incident of ship or tanker collision or stranding, which causes environmental damages, shall be reported to Metrology and Environmental Protection Administration (MEPA) through the Ministry of Petroleum and Mineral Resources in accordance with the existing procedures for reporting incidents. 10.2 Financial Guarantees/Letters of Undertaking required under the circumstances of Section 4.3.3 will require the approval and concurrence of MEPA prior to releasing the vessel to sail. Important: When the necessary financial guarantees/letters of undertaking as outlined in Section 4.3.3, above are received the Senior Harbor Pilot should immediately notify Government Affairs, telephone number 875-2815 so the vessel may be released to sail.

CONCUR V.P, Supply & Transportation V.P., Northern Area Producing V.P., Northern Area Manufacturing V.P., Petroleum & Engineering Development V.P., Saudi Aramco Affairs Exec. Director, Industrial Services

APPROVED Sr. V.P., Manu. Supply & Transportation Sr. V.P., Exploration & Producing

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Saudi Aramco 7180 (5/89) G.I. NUMBER

SAUDI ARABIAN OIL COMPANY (Saudi Aramco) GENERAL INSTRUCTION MANUAL

ISSUING ORG. SUBJECT:

2.104
ISSUE DATE

Approved

REPLACES

TERMINAL DEPARTMENT LEAK AND SPILL REPORTING - ARABIAN GULF

05/30/1995
APPROVAL

11/15/1991
PAGE NUMBER

SAA / ASA

OF

10

ATTACHMENT I (P&I Club) Saudi Arabian Oil Company Dhahran 31311 Saudi Arabia Re: M/V__________________(Vessel) Subject ______________________ on________________________(date) Dear Sirs: In consideration of your consenting to the release from arrest and/or refraining from taking action resulting in the arrest or detention of the M/V ____(vessel)_________ owned by ___________(owner)____ or any other ship or any other property in the same ownership, associated ownership or management for the purposes of obtaining security in respect of your above referenced claim, we hereby undertake to pay on demand such sums as may be awarded by any final unappealable judgment or decision of the Board of Grievances of the Kingdom of Saudi Arabia or any appellate court or tribunal on appeal therefrom or as may be agreed by the parties to be recoverable from the owners and/ or Demise Charterers of the above named ship in respect of the said claim, together with interest and costs, provided that the total of our liability hereunder shall not exceed the sum of US $ __________________ plus interests and costs. And for the consideration aforesaid we have received irrevocable authority from the Owners and/or Demise Charterers of the above named ship to give an undertaking in these terms. This undertaking shall be governed by, and construed in accordance with, English law and we agree to submit to the exclusive jurisdiction of the English Court of Justice for the purpose of any process in enforcement hereof. Yours faithfully,

___________(P&I Club)_______________ By:___________(Agent or Correspondents) By Authority and on behalf of___________(P&I Club)______________ pursuant to telex authority dated______________________and attached hereto. By:___________(Title)_________________

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Saudi Aramco 7180 (5/89) G.I. NUMBER

SAUDI ARABIAN OIL COMPANY (Saudi Aramco) GENERAL INSTRUCTION MANUAL

ISSUING ORG. SUBJECT:

2.104
ISSUE DATE

Approved

REPLACES

TERMINAL DEPARTMENT LEAK AND SPILL REPORTING - ARABIAN GULF

05/30/1995
APPROVAL

11/15/1991
PAGE NUMBER

SAA / ASA

10

OF

10

ATTACHMENT II (Owners) Saudi Arabian Oil Company Dhahran 31311 Saudi Arabia Re: M/V__________________(Vessel) Subject: ______________________ on________________________(date) Dear Sirs: In consideration of your consenting to the release from arrest and/ or refraining from taking action resulting in the arrest or detention of the M/V ____(vessel)_________ owned by ___________(Owner)____ or any other ship or any other property in the same ownership, associated ownership or management for the purposes of obtaining security in respect of your above referenced claim, we hereby undertake to pay on demand such sums as may be awarded by any final unappealable judgment or decision of the Board of Grievances of the Kingdom of Saudi Arabia or any appellate court or tribunal on appeal there from or as may be agreed by the parties to be recoverable from the owners and /or Demise Charterers of the above named ship in respect of the said claim, together with interest and costs, provided that the total of our liability hereunder shall not exceed the sum of US $ __________________ plus interests and costs. This undertaking shall be governed by, and construed in accordance with, English law and we agree to submit to the exclusive jurisdiction of the English Court of Justice for the purpose of any process in enforcement hereof.

Yours faithfully, ___________(Owner)______________ By: ___________(Title)________________

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