Hse Management Practice

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					    HSE Management System

    Showa Shell Sekiyu Group has established and put into practice an “HSE Management System
    (HSE-MS)” conforming to its equivalent of the Shell Group, which coordinates our health, safety
    and environmental activities.
                  Setting objectives   /      Plan   /      Do   /     Check    /        Resetting objectives

          This system is meant for voluntary and continuous improvement of our performance fol-
    lowing the mechanism of so-called PDC cycle.
          At planning and execution stages, a methodology called HEMP (Hazard and Effect
    Management Process) is applied, which consists of identification of all potential risk factors and
    environmental loading increase factors (we call them “hazards”) inherent in a facility to be stud-
    ied, evaluation of the risk effect based on the magnitude of damages on assets and environment
    caused by such hazards and the probability of occurrence of such hazards and priority setting
    for preventive actions based on magnitude of the risk.

                    Sequence of HSE management system
                                                                           1.Leadership and commitment
                      Leadership and commitment                            The corporate principle declares that the Company aims at its
                                                                           growth fulfilling its societal responsibility in environmental
                                                                           preservation, stable energy supply and safe operation.
                                                                           2.Policy and strategic target
                       Policy and strategic target                         The “Basic policy on safety, health and environment” comprising
                                                                           10 items is established to tangibly express the policy to be
                                                                           embodied.
                     Organization, assignment                              3.Organization, assignment and responsibility
                        and responsibility                                 Functions of the HSE committee headed by the president togeth-
                                                                           er with its substructures are clearly defined and tasks are clearly
                                                           Continual       allocated to each layer and department.
                                                         improvement
                      Planning and procedure (HEMP)                        4.Planning and procedure
                                                                           Strategies are discussed and action plans are formulated to
                                                                           solve problems identified by HEMP.

                     Taking action and monitoring                          5.Execution and monitoring
                                                                           The result of every action taken for HSE is monitored and its
                                                                           feedback is made as necessary.
                                                                           6.Audit
                                   Audit                                   Periodic HSE audit is made by auditing function and corrective
                                                                           actions to be taken are studied.
                                                                           7.Management review
                                                                           The audit result is reported to the management for review of the
                          Management review                                strategic targets.




                  Certification of ISO-14001

                 Prior to establishment of HSE Management
                 System, the facilities of Showa Shell Group includ-
                 ing refineries had acquired the certification of
                 ISO-14001, the internationally acknowledged envi-
                 ronmental management system. The Showa Shell
                 Group’s HSE-MS is established taking into
                 account its compatibility with this ISO-14001.

                  Facility                           Acquired in       Inspected/registered by             Certificate no.
                  Toa Oil Keihin refinery             June 1999                  LRQA                             772510
                  Showa Yokkaichi refinery             July 1999                 LRQA                             772522
                  Seibu Yamaguchi refinery            Dec. 1998                  LRQA                             771922




2    Moderate
 In-house Organization to Promote Environmental Preservation

                                       HSE Committee
                                Chairman           President
                                Members            board members
                                Secretariat        HSE division

                                    HSE Subcommittee
                                Chairman director in charge                                        HSE Meetings
                                Members division/dept. managers                             (safety & health committee)
                                Secretariat HSE division                                       (at each business unit)
                                                                                      Chairman       unit manager
                               HSE Action Plan Promotion Meeting                      Members        managers and employees
                                    Organizer HSE division                            Secretariat HSE personnel


                                                                       Medium/Long- Term Environmental Action Plan
                                                                   The environmental action plan identifies the contents of our actions
                                                                   for environmental preservation.
                                                                           A plural number of working groups under the HSE action
                                                                   plan promotion meeting mainly carry out planning and its execution.

  Actions to alleviate environmental loading
 Global warming preventive measures through energy                       Sea pollution preventive measures
 conservation                                                               Oil pollution prevention by renewal of tankers
   Use of energy saving equipment and waste heat recovery                   Oil pollution prevention by means of scrutiny of spot
   equipment, introduction of energy saving operation procedures            chartering contract
   Sizing up of tank trucks, extension of planned delivery area          International cooperation
   Increase in average transport volume of petroleum tankers                International joint development and propagation of solar
 Pollution preventive measures                                              power generation system
   SOx and NOx reduction measures in refineries                             Export and propagation of hydrocarbon vapor recoverysystem
   Reduction measures of benzene in effluent water                       Cooperation with the other industries
   Provision of inner floats to gasoline storage tanks                      Cooperation with cement industry and insulation material
   Recovery and reduction measures of hydrocarbon vapors                    society (for industrial wastes), and housing industry (solar
   Chronological survey of soil                                             power generation)
 Reducing and recycling measures of wastes                               Measures to cope with the other environmental problems
   Regeneration/reuse of catalysts                                          Ozone layer preservation by means of removal/modification of
   Reuse of waste bitumen and concrete                                      chlorofluoro-carbon type fire extinguishers
   Use of reclaimed drums                                                   Systematic disposal/renewal of diesel driven vehicles to
   Survey/research of waste oil reprocessing methods                        comply with NOx abatement law
   Scaling up of containers                                              Advertisement, enlightenment and social activities
 New energy and energy conservation businesses                              Publication of “Quality”, a periodical for enlightenment on
   Propagation/introduction of solar power generation system                environmental matters
   Introduction/promotion of cogeneration system                            Showa Shell Sekiyu Foundation for promotion of
                                                                            environmental activities
 Development/commercialization of environmental load                        Donation and subsidy to environmental NGO’s and regional
 abatement technology                                                       communities
   Production and marketing of low sulfur gas oil
   Production and marketing of low benzene motor gasoline
   Development/commercialization of low unit consumption
   engine oil
   Marketing of water-permeable, water-repellent and durable
   paving asphalt


 Voluntary Action Plan for Environment Preservation of the Petroleum Association

The Petroleum Association established the                                          The Federation of Economic Organizations
“Voluntary action plan for environmental preserva-                          (Keidanren) publishes the “Voluntary action plan for
tion” in February 1972 and its 4th following-up was                         environmental preservation” consolidating action
made in September 2001. Likewise, the other indus-                          plans of those industries to disseminate domestically
tries, which are big consumers of energy, such as                           and internationally the status of Japanese industries
iron and steel, chemical and electric power indus-                          in coping with prevention of global warming.
tries establish their own voluntary action plans.

               I. Preventive measures against warming (promotion of energy conservation)
                        Reduce energy unit consumption by 10% in 2010 as compared with 1990.
                        Reduce fuel for product transfer by 9% in 2010 as compared with 1990.
              II. Measures for reduction of industrial wastes
                        Reduce quantity of finally disposed wastes by 67% (2/3) in 2010 as compared with 1990.
             III. Establishment of the environmental management system
             IV. Technical cooperation with overseas
              V. Marine environmental preservation measures
             VI. Promotion of advertising activities

                                                                                                                                           Moderate   3

				
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