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Health & Safety

I、HSE CONTROL FOR OIL AND GAS DEVELOPMENT UNDER THE EXISTING REGULATIONS

The CBM industry, as an emerging energy sector, is held to be of the upmost importance of its development at China, and that relevant industry codes have been published to mainly impose control over the following:

  1. having obtained the qualifications of entrance into the industry by CBM enterprises;

  2. setting up of administrative body for production safety to appoint specialized production safety officers who have appropriate certificate;

  3. establishment of sound safety management systems and operating instructions, implementation of accountability system of production safety and having adequate necessary safety equipment and devices;

  4. formulation of production safety education and training plan;

  5. regulation for withdrawal and utilization of production safety budget for meeting the required production safety to ensure the safety of surface CBM mining;

  6. formulation of contingency plans for production safety incidents, organization of regular drills and making amendment thereto according to the changes of the conditions of production safety on a timely manner;

  7. adopting effective measures for rescue by CBM enterprises to prevent exacerbation of the production safety incident, avoid casualties and mitigate assets losses immediately after its occurrence, and reporting to the regulatory authorities relating to production safety control on a timely manner as required;

  8. in case of any coal mines in the surface CBM mining areas, communication between CBM enterprise and coal mine enterprise to coordinate and consider the surface CBM mining project and the coal mining plan, and share relevant geologic and engineering information, so as to ensure the safety of surface CBM mining and underground coal mines;

  9. the “design, construction and utilization at the same time” requirement for building, rebuilding and expanding the CBM mining project;

  10. qualifications of supervising company and contractors and review of production safety performance;

  11. more specific requirements on activities in respect of CBM development such as design, drilling, cementing, logging, fracture, drainage, gathering and transportation and compression.

II、HSE CONTROL EMPLOYED BY SINO OIL AND GAS COMPANY

HSE Office has been established and HSE management system document has been published in order to conduct organized emergency drills for incidents relating to production safety on regular basis; HSE management team has been set up and expanded to implement HSE training and induction for new employees; HSE supervision and review for various production activities has also been carried out to avoid accidents and eliminate hidden danger.

III、Recognition of Production Safety

On 4 July, 2014, Shanxi Administration Bureau of Coal Mine Safety granted to the first batch of five coalbed methane enterprises with safety production permit. Orion Energy International Inc. under Sino Oil and Gas Holdings Limited was among the first batch of nationwide enterprises and first batch of foreign coalbed methane enterprises in the PRC to be issued the safety production permit.