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ONTWERP VAN MILIEUBELEIDOVEREENKOMST BETREFFENDE DE

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					1. ------IND- 2007 0244 B-- EN- ------ 20070515 --- --- PROJET

      DRAFT ENVIRONMENTAL AGREEMENT ON THE IMPLEMENTATION OF THE DUTY OF
                         ACCEPTANCE FOR WASTE OILS

Having regard to Council Directive 75/439/EEC of 16 June 1975 on the disposal of waste oils;

Having regard to the Decree of 2 July 1981 on the prevention and management of waste;

Having regard to the Decree of 15 June 1994 on Environmental Agreements;

Having regard to the Order by the Flemish Government of 5 December 2003 laying down the Flemish
Regulation on the prevention and management of waste (VLAREA);

Having regard to Article 3.1.1.4 of the VLAREA and to the Report to the Flemish Government on the
VLAREA, which states that an Environmental Agreement in implementation of the Decree of 15 June
1994 on Environmental Agreements is an appropriate legal instrument for stipulating more specific
additional rules regarding the general basic rules and objectives on the duty of acceptance in the
VLAREA;

Having regard to the notification of the draft Environmental Agreement on waste oil in the Belgian
Official Journal of Laws of [date];

Having regard to the fact that the draft Environmental Agreement, in accordance with Article 6(1) of
the Decree of 15 June 1994 on Environmental Agreements, was made available for perusal in the
OVAM [Public Waste Agency of Flanders] for a period of 30 days following the publication of the
summary in the Belgian Official Journal of Laws;

Having regard to the recommendation of the Social and Economic Council of Flanders of [date];

Having regard to the recommendation of the Flemish Council for the Environment and Nature of [date];

Having regard to the report referred to in Article 6(3) of the Decree of 15 June 1994 on Environmental
Agreements containing the justification for the decision to enter into this Environmental Agreement,
approved by the Flemish Government on [date];

Having regard to the notification made by virtue of Article 6(4) of the aforementioned Decree to the
chairman of the Flemish Parliament of the aforementioned draft Environmental Agreement and the
recommendations by the Social and Economic Council of Flanders and the Flemish Council for the
Environment and Nature;

Having regard to the fact that the Flemish Parliament does not oppose entering into this Environmental
Agreement;

Whereas it is of vital importance for all economic players involved in the lifecycle of waste oil to
become more aware of the extent to which this oil is disposed of and for them to take partial
responsibility for the overall management of such waste;

Whereas it is necessary to raise awareness in the sector and among consumers and to promote the
recycling and reprocessing of waste oils in order to ensure proper environmental protection;

Whereas the parties wish to optimise the collection and processing of waste oils without losing sight of
economic and competitive issues;

Whereas the policy principles must result in improvements to the environments through the
cooperation of all the economic players involved;




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                                      THE FOLLOWING PARTIES:

1) the Flemish Region:
represented by the Flemish Government, in turn represented by Mr Yves Leterme, the Minister-
President of the Flemish Government, and Mr Kris Peeters, the Flemish Minister for Public Works, the
Environment, Energy and Nature,
referred to below as “the Flemish Region”;

2) The following representative organisations:
         VZW [non-profit organisation] Belgische Petroleum Federatie [the Belgium Petroleum
             Federation], Kunstlaan 39/2, 1040 Brussels, represented by Gilbert Asselman, chairman;
         VZW Lubricants Association Belgium, A. Reyerslaan 80, 1030 Brussels, represented by
             Charles Devroey, chairman;
         VZW Belgische federatie van de distributieondernemingen [ Belgian Federation of
             Distributors], E. Van Nieuwenhuyselaan 8, 1160 Brussels, represented by Baudouin
             Velge, delegated director,
         VZW Belgische Confederatie van de Autohandel en -Reparatie en van de Aanverwante
             sectoren [Belgian Confederation for Car Sales and Repair and associated sectors, Jules
             Bordetlaan 164, 1140 Brussels, represented by Freddy Van Hoe, chairman,
         VZW Valorlub [administrative body for the duty of acceptance], Kunstlaan 39/2, 1040
             Brussels, represented by Luc Deurinck, chairman,
referred to below as “the Organisations”:

                                   HAVE AGREED THE FOLLOWING:


                                 CHAPTER 1: GENERAL PROVISIONS

Article 1: terms and definitions

(1) The terms and definitions listed in the Decree of 2 July 1981 on the prevention and management of
waste, in the Order of the Flemish Government of 5 December 2003 laying down the Flemish
Regulation on the prevention and management of waste (VLAREA) and in the Orders of the Flemish
Government of 6 February 1991 laying down the Flemish Regulation on the environmental permit
(Vlarem, Title I) and of 1 June 1995 on general and sectoral conditions on environmental hygiene
(Vlarem, Title II) shall apply to this agreement, without prejudice to the additional definitions set out in
this agreement.

(2) For the implementation of this agreement, the following definitions shall be understood:

1. Oil: lubricating oils and industrial oils of all kinds, mineral or synthetic, in particular oils for
combustion engines, for transmission systems and for machinery, turbines, heat transfer and hydraulic
systems, with the exception of PCB oils.

2. Waste oil: lubricating oils and industrial oils of all kinds, mineral or synthetic, that have become
unsuitable for the use for which they were originally intended, in particular oils for combustion engines,
for transmission systems and for machinery, turbines, heat transfer and hydraulic systems, with the
exception of PCB oils.

3. Waste producer: any natural or legal person whose activities have produced waste, and/or any
natural or legal person who has undertaken pretreatments, mixing or other processing resulting in
changes to the nature or composition of that waste.

4. Regeneration of waste oil: any process that produces base oil by means of the cleaning of waste
oil, in particular by separating contaminants, oxidation products and additives.

5. R9: rerefining of oil and other reuse of oil.




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6. Administrative body Valorlub: not-for-profit organisation established by the federations signatory to
this Environmental Agreement, in accordance with Article 3.1.1.4(1)(1) of the VLAREA and Article
10(1) of this Environmental Agreement.

7. OVAM: Openbare Vlaamse Afvalstoffenmaatschappij [Flemish Public Waste Association], a body
with legal personality, which is included in Article 1(A) of the Act of 16 March 1954 on the supervision
of certain public utility institutions.

8. Waste codes: the codes laid down in the VLAREA for categorising waste, Annex 1.2.1.

9. Programme: a set of actions and measures taken by the administrative body, including at least the
following elements:
         determination of the quantity of waste oil that can be collected;
         a prevention plan;
         a summary of actions for businesses, intermediaries and consumers;
         a summary of actions relating to the collection and processing of the waste oil;
         a financial plan;
         a monitoring method;
         a summary of initiatives to promote the use of biodegradable oil for use in total loss
             lubrication.

10. RVPR: legal person under public law responsible for the collection and processing of household
waste.

11. Member: any member of one of the organisations, which is subject to the duty of acceptance for
waste oil due to its activities.

12. Participant: any oil producer that has concluded a participation agreement with the administrative
body Valorlub.

Article 2: objectives

(1) The aim of this Environmental Agreement is to stipulate more specific additional rules regarding the
general basic rules and objectives on the duty of acceptance set out in the VLAREA. This Agreement
has therefore been concluded in implementation of Article 3.1.1.4 of the VLAREA, which states that
the way in which the duty of acceptance laid down in Articles 3.1.1.1 and 3.1.1.2 may, in accordance
with Article 10(6) of the Waste Decree, be laid down inter alia in an Environmental Agreement as
referred to in the Decree of 15 June 1994 on Environmental Agreements, concluded by the umbrella
organisation of which the parties subject to the duty of acceptance are members.

(2) The aim of the agreement is also to improve the management of waste oil by promoting the
avoidance, selective collection and appropriate processing of the waste oil, taking account of the
organisational, technical, economic and environmental obligations connected with sustainable
development.

(3) The aim of the agreement is also to achieve harmonisation between the three regions as regards
the methods of implementing the duty of acceptance.

(4) The implementation of this agreement is intended to result in all the potentially available waste oil
being collected.

(5) The objectives regarding the collection and processing of waste oil shall be assessed annually, and
may be adjusted using the procedure laid down by law, taking account inter alia of:
         the results achieved in implementation of this agreement;
         technological developments.




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Article 3: scope

(1) The Environmental Agreement has been drawn up between the above-mentioned parties in
accordance with the Decree of 15 June 1994 on Environmental Agreements. The present agreement
is binding on the signatory parties and on their members and participants. The list of members and
participants has been submitted to the OVAM.

The parties undertake to inform their members and participants of the obligations arising from this
agreement.

(2) The duty of acceptance shall apply only to waste oils returned under the following codes in the list
of wastes in Annex 1.2.1 B to the VLAREA:

   08 03 19*             Disperse oil
   12 01 06*             Mineral-based machining oils containing halogens (except emulsions and
                         solutions)
   12 01 07*             Mineral-based machining oils free of halogens (except emulsions and
                         solutions)
   12 01 08*             Machining emulsions and solutions containing halogens
   12 01 09*             Machining emulsions and solutions free of halogens
   12 01 10*             Synthetic machining oils
   12 01 19*             Readily biodegradable machining oil
   13 01 04*             Chlorinated emulsions
   13 01 05*             Non-chlorinated emulsions
   13 01 09 *            Mineral-based chlorinated hydraulic oils
   13 01 10*             Mineral-based non-chlorinated hydraulic oils
   13 01 11*             Synthetic hydraulic oils
   13 01 12*             Readily biodegradable hydraulic oils
   13 01 13*             Other hydraulic oils
   13 02 04*             Mineral-based chlorinated engine, gear and lubricating oils
   13 02 05*             Mineral-based non-chlorinated engine, gear and lubricating oils
   13 02 06*             Synthetic engine, gear and lubricating oils
   13 02 07*             Readily biodegradable engine, gear and lubricating oils
   13 02 08*             Other engine, gear and lubricating oils
   13 03 06*             Mineral-based chlorinated insulating and heat transmission oils other than
                         those mentioned in 13 03 01
   13 03 07*             Mineral-based non-chlorinated insulating and heat transmission oils
   13 03 08*             Synthetic insulating and heat transmission oils
   13 03 09*             Readily biodegradable insulating and heat transmission oils
   13 03 10*             Other insulating and heat transmission oils
   13 08 02*             Other emulsions
   13 08 99*             Oil wastes not otherwise specified
   20 01 26*             Oil and fat other than those mentioned in 20 01 25

(3) The Environmental Agreement does not apply to:
         frying oils and fats or other edible oils;
         polychlorobiphenyls (PCBs) and polychlorotriphenyls (PCTs), solvents; cleaning products;
            antifreeze, brake fluids, hydraulic fluids based on water and/or glycol, other fuels or other
            oil waste not mentioned elsewhere.

(4) The Environmental Agreement applies to waste oils of household and commercial origin, from the
use of new oil placed on the market by the members and participants.




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                      CHAPTER 2: PREVENTION AND RAISING AWARENESS

Article 4

(1) The administrative body Valorlub shall take the necessary initiatives to promote quantitative and
qualitative prevention.

These initiatives shall relate, inter alia, to:
         raising the awareness of both private and commercial users. The aim of this awareness-
             raising is to promote the optimum use of oil and the appropriate collection and disposal of
             waste oil. It thus relates, amongst other things, to the ban on mixing waste oil with PCBs,
             water, solvents, cleaning agents, animal or vegetable oils, detergents, brake fluids, fuels
             and other hazardous waste;
         raising awareness among collectors and processors, in order to improve the effectiveness
             and safety of the collection and processing of waste oils.

(2) For this purpose, the administrative body Valorlub specifies the requirements that the collectors
and processors must fulfil and that are laid down in the cooperation conditions. The cooperation
conditions include the collection and processing options, the storage and transport conditions, the
conditions for taking and analysing samples of waste oils, and the requirement to measure the waste
oil. With regard to the collection and processing of waste oil collected by the RVPR, these
requirements are drawn up jointly by the VVSG [Association of Flemish Cities and Municipalities] and
the administrative body Valorlub and laid down in model specifications.

The model cooperation agreements and the model specifications shall be submitted to the OVAM for
examination. If the OVAM finds them to be unsatisfactory, it may, within 30 days of the submission and
with an explanation, request that they be partly or completely revised.

(3) In order to promote the recycling of waste oil, the administrative body Valorlub shall look into
whether it is necessary to undertake completely or partly separate collection of waste oils such as
hydraulic oil, motor oil, oil for heat transmission and other oils.

The administrative body Valorlub shall take initiatives to promote the use of biodegradable oil for use
in total-loss lubrication.

(4) The administrative body Valorlub shall provide a forum for drawing attention to problems in use,
collection and processing. It must also be possible to use this forum to discuss the impact of the
composition of new oils on the achievement of the environmental quality objectives.

(5) The administrative body Valorlub shall draw up a prevention plan as part of the programme,
describing the initiatives planned to promote quantitative and qualitative prevention. The prevention
plan shall also set out the parameters and evaluation criteria needed in order to monitor it effectively.

The prevention plan must be submitted to the OVAM. If the OVAM finds the prevention plan to be
unsatisfactory, it may, with an explanation, request that it be partly or completely revised. The
prevention plan shall be evaluated annually, and amended if necessary.




                    CHAPTER 3: SELECTIVE COLLECTION AND PROCESSING

PART 1: selective collection




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Article 5

(1) This agreement aims to achieve the collection of all collectable waste oil originating from new oil
placed on the market by producers and importers that are members or participants.

(2) The quantities of collectable waste oil shall be determined on an annual basis in consultation
between the parties, on the basis of the quantities of new oil placed on the market by producers that
are members or participants. This will take account both of re-exported new oil and of oil lost during
use. The determination of the collectable quantities of waste oil shall form part of the programme.

(3) The calculation method and the collectable quantities of oil for the first calendar year of the
implementation of this agreement are set out in an annex to this agreement. The calculation method
for subsequent years shall be determined on the basis of an objective study carried out by Valorlub.

(3) The method of calculating the collectable quantities of oil may be revised in consultation with all
parties, on the basis of technological developments. This revision shall take place annually, on the
basis of experience and data gathered during the previous calendar year.

Article 6: specific provisions for waste oil from households

(1) The waste oil shall be collected by the RVPR at the request of the administrative body Valorlub in
recycling centres, municipal collections or house-to-house collections in accordance with the
provisions of the VLAREA.

(2) The waste oil collected pursuant to paragraph 1 shall be collected and processed on behalf of the
RVPR by operators that comply with the requirements laid down in Article 4(2). The oil shall be
collected using containers, optionally compartmentalised, with a capacity of no more than 5 cubic
metres per compartment.

(3) With a view to the implementation of Article 6(1) and (2) and Article 13(11), (12), (13), (14) and (15)
of this Environmental Agreement, the administrative body Valorlub and the VVSG shall draw up a
model agreement for the RVPR. This model agreement shall also regulate
          the practical methods for collection and taking away for processing. Particular attention
             shall be paid to the measures necessary to ensure that the collected waste oil is not
             contaminated and to increase its quality;
          the means of paying the RVPR the fees as laid down in Article 13(11) and (12) such that
             the amounts payable are paid at least once a year, no later than 30 September of the
             calendar year following the year of collection;
          the means of paying the RVPR the amounts payable as laid down in Article 13(13), (14)
             and (15).
The model agreement shall be submitted to the OVAM for approval.

(3) The Flemish Region undertakes to support the principle of the acceptance, free of charge, of waste
oil from private households collected in accordance with paragraph 1.

(5) As part of the duty of acceptance, the members and participants undertake to help increase
awareness among private individuals, in order to encourage them to hand in unmixed waste oils to
recycling centres, municipal collections or house-to-house collections, as appropriate.

(6) Retailers can discharge their duty of acceptance by clearly displaying a general notice informing
private individuals of the collection options listed in this article.

(7) If it is established that the waste oil is contaminated with PCBs, the additional costs of processing
this fluid shall be borne as follows, pro rata according to the quantities placed on the market in the
Flemish Region by the members and participants:
      for the first four contaminated loads, of a maximum of 5 m each, in each calendar year: 100%
                                                                      3

            by the administrative body Valorlub;
      for subsequent contaminated loads, of a maximum of 5 m each, in each calendar year: 50%
                                                                     3

            by the RVPRs where contamination was detected previously in the same calendar year and
            50% by the administrative body Valorlub.



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The administrative body Valorlub and the VVSG shall determine the methods of implementing this
section in the model agreement.

Article 7: specific provisions for waste oil from businesses

(1) Waste oil from business activities shall be collected in accordance with the VLAREA In order to
     achieve the objectives set out in the VLAREA, the administrative body Valorlub shall look into
     whether it is necessary to collect waste oil of domestic and commercial origin completely or
     partly separately.

(2) The programme must include a summary of the measures to be taken with regard to businesses
and other intermediaries and/or commercial users in order to achieve the objectives of this agreement.
It should also include a summary of the initiatives to introduce a monitoring method for the waste oil.

(3) Where it is established that the waste oil has been mixed with solvents, PCBs/PCTs, cleaning
agents, antifreeze, brake fluid, other fuels or other substances, the producer of the batch of
contaminated waste oil shall bear the costs of processing this mixture of waste.

PART 2: processing

Article 8

(1) The collected waste oil must be processed in accordance with the legislation in force at regional,
federal and European level.

(2) The collected waste oil shall be processed using the best available techniques that do not incur
excessive costs.

(3) Priority shall be given to processing waste oils by means of regeneration, rerefining or other reuse.
The programme shall include measures with a view to achieving the target of processing at least 85%
of the collected waste oil by means of regeneration, rerefining or other re-use and of processing a
maximum of 15% by combustion with energy recovery.

PART 3: revision of the objectives

Article 9

The administrative body Valorlub, together with the OVAM, shall evaluate on an annual basis the
objectives relating to the collection and processing of waste oil and shall, if necessary, amend its
strategy to take account, inter alia, of:
         the result achieved by implementing this agreement;
         technological developments;
         new statutory provisions.


                      CHAPTER 4: THE ADMINISTRATIVE BODY VALORLUB:

Article 10: activities of the administrative body Valorlub

(1) The Organisations shall set up an administrative body in the form of a non-profit organisation in
accordance with the legislation in force.

In order to achieve its objectives, the administrative body Valorlub shall encourage as many natural
and legal persons as possible who produce or import oil to become members of it.

(2) The administrative body Valorlub shall be responsible, inter alia, for:
         the overall management of the financial resources in accordance with Article 13 of the
           agreement;
         reporting as laid down in Article 11 of this agreement;
         carrying out the actions laid down in Article 4 of this agreement.



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(3) Each year, the administrative body Valorlub shall draw up the programme submitted for approval to
the OVAM, by no later than 31 October of the year prior to the calendar year in which it will be
implemented. The OVAM shall approve this programme, in consultation with the administrative body
Valorlub, by 31 December at the latest.

By way of deviation from the previous paragraph, the first programme should be submitted one month
after the publication of this Environmental Agreement in the Belgian Official Journal of Laws.

(4) The administrative body Valorlub shall be responsible for:
1. drafting and implementing the programme
2. disseminating information to all those involved in the implementation of this agreement;
3. promoting and evaluating the collection of the waste oil in accordance with Articles 5 to 7 of this
    agreement and evaluating the processing of the collected waste oil;
4. monitoring the collection, pre-processing and processing of the waste oil;
5. assessing the results achieved and implementing other provisions of this agreement;
6. funding the implementation of this agreement by means of a contribution from participants when
    placing oils on the market or importing them for their own use within their establishments in the
    Flemish Region.

(5) The administrative body Valorlub shall aim for optimum harmonisation of the administrative
procedures and logistics. All the parties involved shall be asked for advice regarding the operating
methods of the administrative body Valorlub.

(6) The administrative body Valorlub undertakes to pursue all its objectives completely transparently.

(7) The administrative body Valorlub shall make efforts to establish a system making it possible to
perform the required inspections.

(8) The OVAM, as the permanent representative of the Flemish Region, shall be invited to all meetings
of the Executive Board of the administrative body Valorlub and to the general meeting and any other
meetings to prepare the decisions to be taken by the Executive Board, but shall not have voting rights
in these meetings. The Executive Board's reports shall be forwarded to the OVAM.

Article 11: obligations to provide information

(1) The administrative body Valorlub shall send the OVAM, with due consideration to paragraph 5, all
information it considers useful in evaluating the objectives that must be achieved in accordance with
this agreement. This includes all information deemed useful in achieving the general objectives
regarding monitoring of the implementation of the Flemish Regulation on the prevention and
management of waste.

(2) The administrative body Valorlub and the Flemish Region shall vouch for the reliability of the data
from the individual businesses involved (by way of non-limitative example, trade in new oil, businesses
involved in the collection and processing of waste oil), taking account of the legislation on public
access to government information.

(3) In order to achieve the objectives of this agreement, the administrative body Valorlub undertakes to
organise an information and awareness campaign. The intensity, form and content of the information
and awareness campaign shall be adapted according to the results achieved.

The plans for the campaign shall be submitted for comments to the OVAM, which shall issue an
opinion within 40 days. If the information campaigns do not comply with the provisions of this
agreement or have an adverse effect on general interest campaigns run by the Flemish Region, the
administrative body Valorlub is required to amend its information campaigns in line with the OVAM's
recommendations.

(4) Before 1 July each year, the administrative body Valorlub shall submit to the OVAM an annual
report containing the following data with respect to the previous year:




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1. the total quantity of oil, expressed in kilos, placed on the market within the Flemish Region by the
    members and participants, and of the oil produced or imported by them for their own use within
    their establishments. The quantity placed on the market shall be estimated on the basis of the
    quantity placed on the market in Belgium, using a key agreed between the administrative body
    Valorlub and the regions for dividing the national quantity between the regions.
2. the total quantity of waste oil, expressed in kilos, collected within the Flemish Region, making a
    distinction between oil of domestic origin and of commercial origin;
3. the plants where the collected waste oil is processed and how it is processed;
4. the total quantities of waste oil, expressed in kilos, used in rerefining, regeneration, R9 and energy
    generation, respectively;
5. the total quantities, expressed in kilos, of base oil and other useful components obtained from
    rerefining, regeneration and R9, respectively;
6. the total quantities of waste, expressed in kilos, obtained from the processing of waste and
    needing to be disposed of;
7. an assessment of compliance with the requirements set out in Article 4;
8. a report of the audit carried out by a chartered account on the annual accounts of the
    administrative body Valorlub;
9. a detailed description of how the collective system is funded.
10. The conversion factor to be used to convert the quantity of waste oil from volume to mass (or vice
    versa) shall be determined in consultation between the OVAM and the administrative body
    Valorlub.

At the same time, the administrative body Valorlub shall present the updated list of all the members
and participants.

(5) The commercial data given in this agreement shall be collected from the members and participants
through an external entity designated by the administrative body Valorlub. The data obtained in this
way shall be recorded by the external entity in an overall report covering all the members and
participants, in such a way that it is not possible to extract market data (including, but not limited to,
prices, costs etc.) and/or market share for individual companies. The administrative body Valorlub
shall ensure that the external entity appointed to collect the aforementioned information provides
adequate guarantees regarding the confidential processing of the data submitted. A confidentiality
agreement shall be signed for this purpose.

(6) At least once a year, the administrative body Valorlub shall have an independent monitoring body
verify compliance with the cooperation agreement, as laid down in Article 4. This report shall be
included in the annual report.

Article 12: participation in the administrative body Valorlub

The administrative body Valorlub may only refuse to allow an oil producer to participate if it has
serious reasons, which must therefore be justified to the OVAM.

Article 13: funding

(1) The administrative body Valorlub is funded by contributions from all the participants. The annual
contribution is calculated as a fixed unit fee per kilogram or litre, multiplied by the number of kilograms
or litres of oil placed on the market by the participant or imported or produced for his own use.

(2) The unit contribution is differentiated according to the type of oil and packaging. The level of the
unit contribution shall be determined by the administrative body Valorlub such that it can meet the
obligations entered into in this Environmental Agreement. The calculation of the unit contribution and
the justification shall be submitted for comments to the OVAM, which shall consult the other regions.
The administrative body Valorlub may amend the unit contribution on an annual basis.

(3) The administrative body Valorlub's book-keeping must be designed such that it is possible clearly
and unambiguously to identify the relative income and expenditure relating, on the one hand, to oil of
domestic origin and, on the other, to oil of commercial origin, as well as the body's own operating
costs.




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(4) If and only if provided for by law:
1. the participants shall, whenever they place new oil on the market in the Flemish Region, include
     their contribution to the administrative body Valorlub in the purchase price and clearly state that it
     is an environmental contribution for the future handling of waste oil.
2. intermediaries and garage owners, and thus the entire distribution chain, shall include said
     contribution in their purchase price.
3. the reference to the contribution shall be included visibly on invoices between professionals.
4. the consumer's contribution shall be made clear to the consumer in accordance with the
     provisions of the VLAREA.

(5) If, however, no existing regulatory provisions allow for this practice, each member and participant
shall determine individually, without consulting other members and/or participants and/or with the
administrative body Valorlub and without discussion with said other members and/or participants
and/or the administrative body Valorlub, what effect the contributions will have on their prices and/or
other sales conditions.

(6) Retailers shall display, in a prominent position in each of their sales outlets, a report indicating how
they comply with the provisions of this agreement. The awareness-raising material made available to
retailers by the administrative body Valorlub shall be submitted to the OVAM for comments.

(7) Depending on the market conditions, the administrative body Valorlub may pay the producers of
waste oil of commercial origin a fixed fee. This fixed fee shall be determined as a function of the
quantity and type of oil, the market conditions for waste oil and the collection method. For this
purpose, the producer of the waste oil shall present a collection certificate issued by and operator with
this the body has concluded a cooperation agreement.

(8) The administrative body Valorlub shall pay the operators with which it has concluded an agreement
a fixed fee determined by Valorlub as a function of the quantities and type of waste oil collected and
depending on the collection and processing method. For this purpose, the operators shall provide the
administrative body Valorlub with information regarding the collection and processing undertaken, in
accordance with the provisions in Article 11(4).

(9) The administrative body Valorlub may refund to each participant, on specific request, an amount
for the quantity of new oil that said participant has produced or imported and then supplied to a trader
who has exported that oil.

The amount to be refunded shall correspond to the amount that the participant paid to the
administrative body Valorlub in connection with the placing on the market of this new oil. For this
purpose, the participant shall inform the administrative body Valorlub by means of a "solemn
declaration" provided by said trader.

The administrative body Valorlub shall handle the refunds annually by means of a regularisation to the
participant's annual final declaration.

(10) The administrative body Valorlub shall determine the fixed contributions on an annual basis such
that the objectives of the agreement can be achieved and the duty of acceptance can be met in full.

(1) Each year, the administrative body Valorlub shall pay the RVPR concerned a fixed fee for
collecting the waste oil as laid down in Article 6(1) of this agreement. This fixed fee shall be
determined annually in accordance with Article 3.1.1.2(4) of the VLAREA and the Ministerial Order of
18 July 2005 laying down more detailed rules for calculating the costs of collection in recycling centres
by producers within the framework of the duty of acceptance. The fixed fee payable by the
administrative body Valorlub is the cost to be invoiced pursuant to the aforementioned article of the
VLAREA, multiplied by the proportion of the quantity of oil placed on the market in the Flemish Region
by the participants.

(12) Each year, the administrative body Valorlub shall pay the RVPR concerned a fixed fee for
collecting and processing the waste oil as laid down in Article 6(2). This fixed fee must be based on
cost-efficient collection and processing of the waste oil and shall be calculated annually as follows:




                                               - 10 - e3c145b6-5ebd-46d3-93ec-121188c1a48f.doc
       the reference cost per litre or kilogram of waste oil for collection and processing shall be
        determined every two years; this reference cost shall be determined in consultation between
        the administrative body Valorlub and the VVSG. For the intervening years, the reference cost
        shall be index-linked;
       the fixed fee shall be calculated by multiplying the quantities of oil collected by the proportion
        of the quantity of oil placed on the market in the Flemish Region by the participants.

(13) With retroactive effect, the administrative body Valorlub shall pay the RVPR an amount
corresponding to the costs as from 1 January 2006 for collecting the waste oil as determined in Article
6(1), multiplied by the proportion of the quantity of oil placed on the market in the Flemish Region by
the participants. The collection costs shall be calculated as laid down in the Ministerial Order of 18 July
2005 laying down more detailed rules for calculating the costs of collection in recycling centres by
producers within the framework of the duty of acceptance. The amount owed shall be paid back in
2010.

(14) With retroactive effect, the administrative body Valorlub shall pay the RVPR an amount
corresponding to the costs as from 1 January 2004 for collecting and processing the waste oil as
determined in Article 6(2), multiplied by the proportion of the quantity of oil placed on the market in the
Flemish Region by the participants. This shall take account of the reference cost for the years
concerned. Payment of the amount owed shall be spread over 2008, 2009 and 2010.

(15) For 2004, 2005 and 2006, the proportion shall be set at 0.90. As from 2007, the proportion shall
be calculated as the quotient of the quantity placed on the market that year by the participants in
Valorlub, divided by the sum of the quantities placed on the market by the participants in Valorlub and
the quantities placed on the market by producers and importers who submit an individual waste
management plan to the government.

(16) Each year, the administrative body Valorlub shall, at its own expense, have its annual accounts
audited by a chartered accountant.

(17) The financial guarantee pursuant to Article 3.1.1.4(2)(11) of the VLAREA shall be built up in the
course of 2007, 2008 and 2009, such that it amounts to the equivalent of 6 months' operation for the
body in Flanders by the end of 2009.

(18) Any business that concludes a participation agreement with the Valorlub undertakes to meet all
the obligations described in this Environmental Agreement that apply to it, including those obligations
that can be required prior to the date of participation in Valorlub.

(19) The contribution set out in paragraph 1 of this article shall be payable by any business that
concludes a participation agreement with Valorlub as of 1 January 2007 or 1 January of the first year
for which the participant cannot provide evidence that it has complied with the duty of acceptance
incumbent on it.


                            CHAPTER 5: OBLIGATIONS OF THE REGION

Article 14

(1) The Flemish Region shall argue the case with the other regional authorities for harmonisation of
the legislation regarding the duty of acceptance for waste oils of both domestic and commercial origin
within the three regions.

(2) The Flemish Region undertakes to ensure that all those involved apply the duty of acceptance
strictly and to prosecute all infringements. The Flemish Region undertakes to ensure that the required
inspections take place at all parties involved.

(3) The Flemish Region undertakes, when approving any individual waste management and
prevention plans, to apply principles that are equivalent to those in this Environmental Agreement.




                                              - 11 - e3c145b6-5ebd-46d3-93ec-121188c1a48f.doc
(4) In order to enable this agreement and the administrative body Valorlub's initiatives, the Flemish
Region undertakes to adopt any additional regulatory provisions necessary for this purpose at its level,
in consultation with the administrative body Valorlub.


                                   CHAPTER 6: FINAL PROVISIONS

Article 15: Disputes Committee

(1) In the event of a dispute about the implementation of the Environmental Agreement a Disputes
Committee shall be set up. This Committee shall be set up ad hoc (depending on the nature of the
dispute) and shall always consist of two representatives of the Flemish Region and two
representatives of the administrative body Valorlub. The chairman shall be designated by consensus
by the 4 representatives.

(2) The Dispute Committee's decisions shall be taken by consensus. In the absence of consensus,
the Committee shall report to the Flemish Minister for the Environment.

Article 16: duration and termination

(1) This agreement is concluded for a maximum period of 5 years, equivalent in the three regions (end
date …..), and shall enter into force ten days after publication thereof in the Belgian Official Journal of
Laws.

(2) The parties may terminate this agreement at any time, provided they respect a notice period of six
months. The notification of termination shall take place, under penalty of being null and void, either by
registered post or by means of a summons. The termination notice period shall commence on the first
day of the month following notification.

Article 17: amendments and additions

(1) The provisions of this Environmental Agreement shall be amended in line with any future European
or federal legislation in this field or any other obligations arising from international or national law.

(2) During the validity period of the agreement, the parties may make amendments and/or additions to
the agreement by following the procedure set out in the Decree of 15 June 1994 on Environmental
Agreements.
Any amendments and additions to this agreement shall only be applicable if they are set out in a
written agreement that has been signed by all parties and that makes specific reference to this
agreement.

Article 18: competence clause

Any dispute arising from or related to this agreement and for which no solution is found by the Dispute
Committee referred to in Article 15 shall be submitted to the Court of First Instance of Brussels.

Article 19: final provisions

The agreement was concluded in Brussels on ……… by the representatives of all parties.. Each party
acknowledges that it has received a copy of the Agreement.




                               ON BEHALF OF THE FLEMISH REGION




                          The Minister-President of the Flemish Government,



                                              - 12 - e3c145b6-5ebd-46d3-93ec-121188c1a48f.doc
                                           Yves Leterme




              The Flemish Minister for Planning, Energy, the Environment and Nature
                                           Kris Peeters




                             ON BEHALF OF THE ORGANISATIONS




                       On behalf of the VZW Belgische Petroleum Federatie
                                         Gilbert Asselman




                       On behalf of the VZW Lubricants Association Belgium
                                         Charles Devroey




               On behalf of the VZW Federatie van de Belgische Distributiebedrijven
                                       Baudouin Velge



 On behalf of the Belgische Confederatie van de Autohandel en -Reparatie en van de Aanverwante
                                             sectoren
                                         Freddy Van Hoe




                                       For the VZW Valorlub
                                           Luc Deurinck
                      Annex 1: collectable quantities of oil in Belgium in 2002

                           Category Total market            %             Quantity         Comme
                                     tonne/year        collectable       collectable         nts
                                                                         tonne/year
                                                       min    max       min        max
       ENGINE OILS                        40,775                      17,989      22,990
    Lubricating oils for     1A + 1A1     18,486       50%    60%      9,243      11,092    (1)
      passenger cars
 Lubricating oils for diesel    1B        19,307       40%    55%     7,723       10,619    (2)
  engines for commercial +1B1+1B2
vehicles, agriculture, road-
            laying
  Lubricating oil for two-      1C         404         0%     0%         0          0       (3)
       stroke engines
     Other engine oil           1D         1,525       40%    50%      610         763      (4)
   Oil for ships' engines       1D         1,034       40%    50%      414         517      (5)



                                           - 13 - e3c145b6-5ebd-46d3-93ec-121188c1a48f.doc
          (national)
Oil for aircraft engines and    1F           19         0%     0%        0          0        (6)
           turbines

     OILS FOR GEAR                         26,024                     13,970     18,713
      WHEELS AND
      GEARBOXES
   Automatic gearbox oil        2A          2,413       50%    70%     1,207     1,689       (7)
     Gear wheel oil for         2B          3,870       50%    70%     1,935     2,709       (8)
   automotive purposes
     Gear wheel oil for         2C          2,918       70%    80%     2,043     2,334       (9)
    industrial purposes
Hydraulic transmission oil      2D         15,974       55%    75%     8,786     11,981      (10)
Fire-retardant hydraulic oil
    Shock absorber oil          2E           849        0%     0%        0          0        (11)

LUBRICATING OIL FOR                         4,797                      1,775     2,594
   METALWORKING
  Cooling lubricating oil       4A           234        50%    70%      117       164        (12)
     (tempering oil)
    lubricating oil for         4B          2,586       50%    70%     1,293     1,810       (13)
 metalworking (neat oil)
   Lubricating oil for          4C          1,215       30%    50%      365       608        (14)
      metalworking
 (emulsifiable/soluble in
          water)
   Anti-rust products           4D           513        0%     0%        0          0        (15)
       Rolling oils             4E           249        0%     5%        0         12        (16)

 HIGHLY REFINED OILS                        1,945                      1,269     1,556
Turbine oil (except aircraft)   5A          1,024       70%    80%      717       819        (17)
 Transformer oil / cable oil    5B           921        60%    80%      553       737        (18)

      OTHER OILS                            9,021                      1,003     2,364
      Compressor oil            6A1          900        40%    60%      360       540        (19)
 Cooling compressor oil         6A2          130        50%    70%       65        91        (20)
    Standard machine            6B          5,777       10%    30%      578      1,733       (21)
lubricants (inc. slide-way,
pneumatic tool, total loss
       system, etc.)
Other industrial oils not for   6C          2,214       0%     0%        0          0        (22)
    lubricant purposes

    PROCESS OILS                           58,613                        0          0
  Process oil (technical    7A,7B,7C,      58,613       0%     0%        0          0        (23)
  white oil (technical and     8A
 medical aromatic waxes
 and paraffins, lubricating
             oils

          TOTAL:                           141,175                    36,006     48,217


Comments
(1) Consumption during use of the oil: combustion, leakages, evaporation. The collectable quantity
    falls as the lifespan of these oils increases. This does not include new oil in new vehicles, and
    therefore also does not include waste oil therefrom. (total: approx. 140 tonne/year)




                                            - 14 - e3c145b6-5ebd-46d3-93ec-121188c1a48f.doc
(2) Consumption during use of the oil: combustion, leakages, evaporation. The collectable quantity
     falls as the lifespan of these oils increases. These applications have a higher specific
     consumption than in touring vehicles.
(3) Engine oil in two-stroke engines is completely consumed in the course of use.
(4) Consumption: leakages. Gas engines, lawnmowers, fixed motors and engines, etc.
(5) Consumption: leakages. National = inland waterway shipping; ocean shipping = export.
(6) Leakages, evaporation.
(7) Leakages, evaporation.
(8) Leakages, evaporation.
(9) Leakages, evaporation.
(10) Complete consumption of non-combustible oils during use.
          Not hydrocarbon-based.
(11) Used shock absorber oil is recovered in recognised centres for the depollution, dismantling and
     destruction of end-of-life vehicles (hence the 0% in this table). The lifespan is the same as the
     lifespan of the shock absorber. Loss through leakage.
(12) Leakage, evaporation, treatment with the product.
(13) Leakage, evaporation, treatment with the product.
(14) The waste is released in the form of an oil/water mixture
          (10% oil to 90% water). This percentage relates only to the oil phase.
(15) Complete consumption during use.
(16) Almost complete consumption when treating the product, leakages.
(17) Leakages.
(18) Transformer oil: 80-90% leakages. Total consumption of the oils for soaking cables.
(19) Leakages, evaporation.
(20) Leakages, evaporation.
(21) Total consumption during most uses.
(22) Total consumption in the product, e.g. process oil.
(23) Total consumption of the process oil in the product.

The maximum and minimum percentages given for the collectable quantities of oil are initial
conservative estimates made by members of the Interfederal Working Group in January 2004 and
need to be refined (and subdivided per Region) by the administrative body Valorlub as from the year
following the first year of operation.




                                             - 15 - e3c145b6-5ebd-46d3-93ec-121188c1a48f.doc

				
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