A walk in the Chemical Park -Safety Management Perspectives- Clariant´s experiences

1. A walk in the Chemical Park-Safety Management Perspectives-Clariant´s experiences

2. Contents: • Differences between conventional chemical sites (1 owner = 1 producer) and multi-occupier chemical sites – so called chemical parks • Specific issues in chemical parks and recommendations for chemical parks from a safety perspective • Opportunities and key success factors for a chemical park • Conclusion

3. Personal Introduction Dieter Dambmann, Chemical Engineer (TU Karlsruhe) Professional Background: 1986 - 1993 Hoechst Engineering 1994 - 1996 Infrastructure at Frankfurt-Höchst site (staff function) 1996 - 1998 Emergency Manager at Frankfurt-Höchst site (InfraServ) 1998 - 2003 Clariant - Corporate ESHA responsible for safety and risk management

4. N W E S 5 0 0 0 5 0 0 1 0 0 0 1 5 0 0 M e t e r s A Conventional Chemical Site Aerial Photograph of the Hoechst AG Site (1994)~ 4.2 km²

5. A Chemical Park Leased AreasHoechst Industrial Park (December 2001) Chemical Park

6. Neighborhood - Homes - Schools - Hospitals - Authorities - Businesses - etc. A Conventional Chemical Site (several plants, one legal entity) Infrastructure plants e.g. wastewater treatment plant, energy supply etc. Site Area Plant 2 Laws and regulations Plant 1 Plant 4 Plant 3 Fire brigade Fence

7. A Chemical Park (coexistence of several independent legal entities) Site Operating Company: Chemical Park Area Neighborhood Plant of Company X Infrastructure plants e.g. wastewater treatment plant, energy supply etc. Plant of Company X - Homes - Schools - Hospitals - Authorities - Businesses - etc. Laws and regulations Company Z Plant of Company Y Site Operating Company: Development of areas for new site users Fire brigade Fence This chemical park (including the infrastructure plants and some site services) can be operated by a separate site operating company or by the major user, so-called “major user concept”.

8. Services of the Site Operating Company (examples):

9. Using the before mentioned services means the site operating company and the site-users have to cooperate. Key elements are: • The “site operating company” issues a minimum of common site rules that • are sufficient to ensure well-ordered circumstances (not laissez faire) • allow the various site-users sufficient independence and flexibility (no excessive interference) • The “site operating company” offers attractive conditions and services for the site users’ businesses and their further development plans

10. Major User Concept vs. Separate Site Operating Company

11. Clariant´s Experience in Chemical Parks (Examples)

12. What remains unchanged with the transformation into a chemical park ? To start with, remain unchanged as long as plants and processes do not change. the plants itself • the physical connections between the plants (pipes, channels, roads, etc.) • and the hazard potential

13. What has changed with the transformation into a chemical park? Site Operating Company: Chemical Park Area Neighborhood Plant of Company X Infrastructure plants e.g. wastewater treatment plant, energy supply etc. Plant of Company X - Homes - Schools - Hospitals - Authorities - Businesses - etc. Laws and regulations Company Z Plant of Company Y Site Operating Company: Development of areas for new site users Fire brigade Fence Now a new situation exists: Formally new internal neighborhood ( ) is created between the different companies using and operating the site

14. Clear responsibilities and interfaces between the independent legal entities are defined in site contracts, addressing below mentioned specific chemical park issues ownership of properties and facilities sharing of information between the companies on site • ability for each company to influence important decisions potentially affecting their own business • clarifying of applicable regulations inside the fence of chemical parks, e. g. related to noise, transportation on internal roads etc. • agreement on internal liability rules and respective insurance management

15. Ownership of Properties and Facilities in a Chemical Park (1) Different concepts of land provision are known. Chemical park users may: • be the owner of their premises and facilities • hold a hereditary leasehold • lease their premises and facilities • rent the facilities. Far-reaching consequences result from the type of land provision in regard to: • balance sheet and tax effects • insurance structures • responsibility and liability for existing and future soil contamination • degree of responsibility for the used facilities • exit conditions

16. Ownership of Properties and Facilities in a Chemical Park (2) Opportunities: Parcelling out of the property is avoided by applying the leasing model. So, many responsibilities remain in “one hand”, the hand of the land-owner. Key Issues: Leasing contracts define the responsibilities and the conditions of the leasehold clearly

17. Sharing information and ability to influence important decisions in chemical parks Examples for formal arrangements

18. Agreement on common site rules and infrastructure services

19. Strategic Tasks Operational Tasks Waste prevention and reclamation strategies Operation of the waste disposalplants, e. g. waste gas inciner-ation, residues incineration etc. Documentation of the type andquantity of generated waste and Reporting to authorities as requested by local laws and regulations Information / Documentation Organization and operation of the waste collection systems Participation in investmentdecisions and approval requests on disposal plants Documentation of disposal Assignment of responsibilities and definition of interfaces. Example: Waste Management at Hoechst Chemical Park

20. Good Prospects for Chemical Parks

21. Example: Safety Management (1) • Opportunities: • Especially smaller enterprises, which do not have own experts find specialized services in the field of occupational safety, process safety and product safety.

22. Example: Safety Management (2) Key Issues: • Safety professionals may work in different companies in a chemical park. To take best benefit from the broad expert knowledge, exchange and sharing of information is essential. • Formal arrangements help to make the networking sustainable. An example of such networking is the Industrial Interest Group, IGR, which arose from the break up of Hoechst AG and provides technical information on process safety to guest companies on the chemical park.

23. Example: Emergency Management (1) • Chemical Parks usually maintain well and specifically equipped emergency response teams on-site. They are specifically trained, familiar with the place and have a short intervention time due to their presence on-site. • On-site professional emergency services work together with the chemical park users also in the field of incident prevention, incident detection and emergency training. This increases the level of safety and the extent of preparedness for the threat of major accident hazards. • All operations (including the less hazardous) profit from the availability of the chemical-park-wide professional emergency management. Opportunities:

24. Example: Emergency Management (2) Key Issues • To a defined extent all chemical park users - regardless of the risk of their business- accept uniform emergency procedures and participate in the cost bearing. • Clearly defined and uniform responsibilities of the site emergency services and the guest company in an emergency, e. g. for: -immediately assessing the hazard / damage resulting from an emergency -immediately warning personnel on site and external neighbors -supplying initial information to the authorities and the public -emergency measures (fire fighting, evacuation, medical services, environmental protection measures etc.) -shutting down plants of any companies on site for emergency reasons and liabilities for the consequences • Strict switch from normal organization to emergency organization is essential. Joint information to the public on the hazards of operations at the chemical park (Seveso Directive)

25. Conclusion