Environmental Responsibility Sustainable environmental management within NIS comprises delivery of equipment revamp projects and those aimed at reducing the pollution of air, soil, water and ground water, reclamation and re-cultivation of polluted areas (historical pollution), environmental monitoring, energy efficiency boost and increased use of renewable sources of energy and many others. Air NIS, being committed to sustainable development and meeting the requirements of legislation seeks, through best management practices, to maximally contribute to environmental protection. Measuring of the emissions of pollutants is carried out by legal entities that are authorized and accredited for the measurement of emissions by prescribed manual or automatic methods. Since 2012, the company has been implementing a small-scale cogeneration programme. Mini power plants deployed at oil and gas fields in Serbia generate electricity and thermal power out of gas that has so far not been used due to the high content of carbon dioxide and nitrogen. This makes the process of transforming this gas into electricity environmentally important as it reduces the emission of noxious gases into the atmosphere, as before it was burnt on flares. In 2015, NIS completed the construction of amine plant for extraction of CO2 from natural gas at gas wells was performed, which will, via compressors, be injected into the underground reservoirs of oil and gas fields, which will prevent CO2 in natural gas to end up in the atmosphere. Projects initiated in the previous years were completed in 2015. The “Exploration and Production“ Block completed a project for the construction of the system for collecting and burning fluids (LPG). The objective of the project is to increase the safety of processes and protect the air. With the construction of this system, separated gas phase is burned in the flare, which prevents easily vaporous hydrocarbons to reach the atmosphere. The investments in Refining are of tremendous environmental importance. With the completion of the modernization of the loading terminal, the most environmentally safe method of fuel tank truck loading was installed. This is a bottom loading method. This investment has helped eliminate noxious fumes from tank truck loading at Pančevo loading terminal. Another important environmental investment in NIS’ refining segment covers the closed drainage system near process equipment. The process serves to collect the liquid (fluid) discharged during the production process into separate tanks and to return it back into the production process. In the Pančevo Refinery there has been a successful completion of the closed circuit sampling system project, thanks to which samples that are taken do not come into contact with the atmosphere, which is an important contribution to environment protection. The project was delivered within a year and a half and now the entire refinery is outfitted with the modern sampling method. Water A responsible attitude to water resources is one of the priorities of the Company in terms of environmental protection and use and utilisation of natural resources. The use of water resources is a prerequisite for production and technological processes (steam production, functioning of cooling systems), fire protection provision, bottling of drinking water, as well as for sanitary purposes. Water is supplied to all NIS departments and plants by drawing: • surface water from river intakes, • raw ground water and • water from the public water supply network, while the Jazak Drinking Water Producing Plant draws mineral water from a natural water source to subsequently bottle it. The testament to the company’s responsible treatment of water resources is the fact that as much as 84% of the water used comes from the Danube and the Danube-Tisa-Danube channel, that does not threaten their potentials considering that this is considerably under 5% of their average annual flow. Waste water NIS attaches great importance to waste water treatment, as oily waste и precipitation water poses a risk to recipients. Separators – devices for separation of oil and water phase have been installed at petrol stations. Currently, 267 petrol stations are equipped with the devices that separate mineral oils from water, before they are released into the recipient. In the following period the plan is to install missing separators, where technical and safety conditions were met for installment. In some facilities, waste water is collected in collecting pits, which are periodically emptied in accordance with regulations. At the end of 2015, a total of 310 facilities were registered which are dedicated to treating waste water in NIS. At the end of 2015, a reconstruction of existing waste water treatment plants was carried out in the Plant for the production of Jazak drinking water. In the total quantities of waste water in 2015, waste water that is externally treated represents 55% of the total waste water. In terms of the Plant for the production of Jazak drinking water, the quantity of discharged waste water was reduced by 50% compared to the previous year, due to production optimization. Waste The Company regulates the management of all types of waste (classification, monitoring of quantities and types of waste, prevention of waste generation, storage, final disposal, reporting) in accordance with the internal Standards that are in compliance with the legislation of the Republic of Serbia. By performing its business operations NIS generates both non-hazardous and hazardous waste which shall be treated in accordance with legal regulations. During 2015, it generated and disposed less waste than in 2014. Monitoring the generation and disposal of waste is conducted daily for each type of waste and is recorded in the Daily Waste Log concerning the waste generators, with the total volume of generated and disposed of (hazardous and non-hazardous) waste is registered with the Environment Protection Agency. As a part of the implementation of the “Dry Locations“ project, all eight drilling rigs which the Company possesses were equipped with metal or concrete pools used for collection of waste mud during drilling. The implementation of this project prevents any kind of harmful effect of waste drilling fluids on the environment, i.e. the conditions have been created for swift and safe disposal of these substances immediately upon their generation. Soil By remediation of the soil where activities of exploration and oil and gas well drilling were conducted, as well as the activities of oil and gas exploitation, the risk to the health of local residents and employees at these facilities, due to the pollution of soil, groundwater and air is being eliminated. During 2015, the activities on the remediation of historic pollution and restoring of the agricultural land to its original state were continued. A total of 25 primary mud pits, 14,963m2 in surface, were remediated. Thus the total number of rehabilitated primary mud pits increased to 150, and the total area of the recultivated soil amounts to 106,026 m2, i.e. more than 10 ha. The majority of the primary mud pits is located in Vojvodina, in the municipalities of Srbobran and Kikinda, while the remaining ones are distributed in Banat and Bačka, as well as around Požarevac. Fuel In the wake of the completion of the first stage of revamping, the Pančevo Refinery NIS has completely switched to the production of Euro-5 standard fuel. Currently, NIS’ revamped processing complex produces top quality fuel and continuously expands its product range. Today, NIS offer to the market includes motor gasoline with best characteristics with 95, 98 and 100 octanes and Diesel-fuel of premium quality. The improved efficiency of the fuel production process is accompanied by a rigorous environmental safety control. Environmental Accidents Environmental accident rate has been diminishing year in, year out. The major portion of environmental accidents (99%) by its gravity, has been classified as low. In 2015 the company continued to improve accident response procedures and all environmental accidents were effectively remediated in the shortest possible time. In 2015, the trend of reducing the number of environmental accidents continued. The total of 55 environmental accidents were recorded, which is 18% less than in 2014 when 67 accidents were registered. As in the previous years, according to the type of accident, the most frequent one was spilling of oil and petroleum products on the soil 75%, gas emissions 11% and spills of chemicals on the soil in 7% of cases. Impact on biodiversity Business activities of NIS do not affect the biodiversity in protected areas, given the fact that the activities are carried out in a very limited number of facilities within or near protected areas. The company obtains opinions and the requirements of the competent authorities (Department of Nature Conservation of Serbia, Provincial Institute for Nature Protection), which are an integral part of the Impact Assessment Study of the project, implements the prescribed measures for the protection of the environment and monitors environmental impacts. The sites where the Company performs its business activities, and which are located inside protected areas, or in their vicinity are: • The Special Nature Reserve “Deliblatska peščara“ – SGS Tilva (out of operation in 2015) and HTS “Devojački bunar“ • The Special Nature Reserve “Okanj“ laje – nearby Plant for preparation and transport of oil and gas in the area, and the well Eli-1 in the reserve (out of operation in 2015) • In the vicinity of the Special Nature Reserve “Pašnjaci velike droplje“ – SMS Mokrin west and KS-2 Mokrin West • In the vicinity of the Special Nature Reserve “Koviljsko-petrovaradinski rit“ – SSG Novi Sad 6 • In the vicinity of the Nature park – “Palićko jezero XTS Palić 1, Pć-24 and LPG Storage Subotica • In the vicinity of the Natural monument forest Junaković – HTS Prigrevica • In the vicinity of the Natural monument – “County Park“, town garden in Zrenjanin – SSG Zrenjanin 1 Outside Vojvodina, SSG Donji Milanovac is located in the national park Djerdap. Facilities of the Block “Promet” – SSG „Iriški venac“ in the national park Fruška Gora, and SSG Golubac near the national park Djerdap were removed during 2015, in accordance with the Decisions previously obtained from the competent authorities.