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Regulations on the Start-up and Shutdown Management of Refining and Chemical Processing Plants Chapter 1 General Provisions Article 1 These regulations are formulated to standardize the management of the start-up and shutdown of refining and chemical processing plants, and to ensure the safety and smooth operation of such plants during these processes. Article 2: The normal shutdown and restart of the devices referred to in these provisions mean shutdowns and restarts that are scheduled in advance according to plans and instructions. An emergency shutdown refers to a forced stoppage of production units in the event of abnormal conditions. Article 3 These provisions apply to the refining and chemical enterprises under the joint-stock company. Chapter 2 Management Responsibilities and Requirements Article 4 The deputy general manager in charge of production at the regional branch is responsible for issuing and implementing the documents related to the start-up and shutdown of operations at that regional branch. The Production Operations Department of the regional branch is the specific responsible department for organizing and implementing the startup and shutdown of production facilities. Article 5: The deputy plant manager in charge of production at the factories under the regional branch is responsible for reviewing and organizing the implementation of the documents related to the startup and shutdown of plant-level production facilities. The plant production operation department is the specific department responsible for organizing the startup and shutdown of production facilities. Article 6: The head of the workshop (plant) is responsible for organizing the preparation of procedures for starting up and shutting down production plants, as well as for overseeing the actual process of starting up and shutting down. -42- Article 7: Documents for starting up and shutting down operations include the approval forms for starting up and shutting down the facility, technical plans, and operating procedures. The specific management procedure is as follows: For startup and shutdown at the regional branch level, the workshop (plant) submits an application form for approval, along with operating procedures and any necessary technical plans; this is then reviewed by the relevant professional management department, and approved by the deputy general manager in charge of production at the regional branch. Plant-level start-up and shutdown: The workshop (unit) submits an application form for start-up and shutdown, along with operating procedures and necessary technical plans, which are then approved by the head of the production and operation department at the regional branch. The deputy plant manager in charge of production should be on site to supervise and coordinate, while the relevant specialized departments shall handle the professional management. Chapter 3 Confirmation of Plant Commissioning Conditions Article 8 Condition confirmation must be carried out prior to plant commissioning. The confirmation procedure is as follows: (1) Before the production facility starts operating, the workshop (facility) first conducts an internal inspection; once it is successful, an application for confirmation of the operating conditions is submitted to the production and operation department of the factory or regional branch ； (II) The production and operation department of the factory or regional branch shall organize relevant departments to further verify the conditions for commencing operations, and complete the signing confirmation procedures ； (III) After confirmation of compliance, the workshop (plant) organizes production to commence in accordance with the start-up schedule set by the production and operation department of the factory or regional branch. -43 - Article 9: The items for confirming the conditions for normal commencement of work include: (1) The project commencement leadership team has been established, and management personnel, technical staff, and operators at all levels meet the requirements for taking up their positions. (II) Technical documents such as process technical specifications, startup procedures, and safety and environmental protection plans, along with relevant management systems, are complete. (III) The types and quantities of raw materials, fuels, catalysts, chemicals, standard samples, spare parts, lubricants, etc., required for the operation of the installation are sufficient, and they have been installed in place as required ； The packaging materials, containers, and transportation equipment for the product are in place. (IV) Equipment and facilities for safety, industrial hygiene, fire protection, gas prevention, first aid, communication, and labor protection are properly installed and in good condition for use ； All tools and equipment for the position are available ； The shipping arrangements have been made ； Inspection routes and signs have been set up. (5) The equipment has been fully restored after inspection, maintenance, and repair ； Equipment such as containers and pipelines have passed inspection, with relevant records available. (VI) The equipment and pipelines have passed the purging, pressure testing, and leak detection; the rotating equipment is in good condition and ready for use ； Responsibility for the management of instrument blind flanges has been implemented. (7) The safety facilities (safety valves, pressure gauges, combustible gas detectors, hydrogen sulfide detectors, etc.) have been installed, tested and found to be in good condition, and are now in use ； The device’s drainage system is in good condition ； Toxic and hazardous chemicals are stored and protected properly ； Comprehensive measures are in place for dealing with oil return, defective products, \"three wastes\" and pollutants that may arise during production. (8) The instrument systems and various interlock and self-protection systems have been debugged and are ready for operation. -44- ； Energy meter activated ； The equipment markings and pipeline flow direction markers are complete and accurate. (IX) The electrical equipment has passed the commissioning tests and is ready for power supply. (X) Sampling facilities are in good condition, and analytical testing is ready. (11) The construction site has been cleaned up; temporary facilities at the installation area have been removed, and the insulation work on equipment and pipelines is essentially complete. (12) External support systems such as utility services, oil storage and transportation facilities, and flare systems have been verified to be in good condition. (13) The device passes the safety risk assessment organized by the regional branch. Article 10: When a newly built, renovated, or expanded facility commences operations for the first time, it must comply with the relevant regulations of the joint-stock company. Article 11: A risk assessment must be conducted prior to the commencement of construction, renovation, or expansion of facilities, in order to determine the appropriate risk control and mitigation measures. Chapter 4 Confirmation of Plant Shutdown Status Article 12 A status confirmation must be carried out when the plant is shut down. The confirmation procedure is as follows: (1) After the production facility is shut down normally, the workshop first conducts an internal status check; once it is confirmed to be satisfactory, an application for confirming the shutdown status is submitted to the safety management department of the factory or regional branch. (II) The safety department of the factory or regional branch shall organize relevant departments to conduct further status verification on the shut-down equipment –45– and complete the signing confirmation procedures. Article 13 The contents of confirming a normal shutdown state include: (1) In accordance with the shutdown procedures, all media inside equipment such as process pipelines, towers, containers, heating furnaces, pumps, and heat exchangers shall be completely removed, and corresponding treatments such as purging, hot water steaming, water flushing, acid-base neutralization, chemical cleaning, nitrogen purging, and air purging shall be carried out as required by the procedures, so that the pipelines and equipment are thoroughly purged and replaced to meet the specified standards. (II) The inspection device must be thoroughly isolated from the public system and other devices in accordance with the isolation plan. In the isolation plan, the list of blind flanges should match the actual situation on site; a \"Do Not Move Blind Flange\" sign must be installed at the locations where blind flanges are used, and a designated person shall be responsible for their management. (III) Before shutting down the facility for inspection, all oily waste must be removed from the oil separation tanks and sewage tanks, and the sewage must be emptied. The sewage well inside the device is sealed, isolating the wastewater from the outside world. The sewage lines within the device should be treated under certain conditions, prior to shutdown for inspection. The device’s drain should be sealed before the project is halted for inspection. (IV) Self-igniting materials such as FeS, as well as flammable and explosive hazardous substances, require special plans for handling, protective measures to be taken, and special safety inspections to be conducted. (5) The ground of the equipment, as well as the outer surfaces of the equipment, platforms, and pipes, must be free of oil stains, debris, and loose insulation sheets. There are no oil drums, chemical agents, shutdown emissions, or industrial waste materials inside and around the facility. (VI) Fire-fighting and safety facilities of the installation are in good condition and ready for use. Fire extinguishers, air respirators, as well as equipment for protection against toxins and heat and dust are all available in good condition; steam hoses and water hoses are neatly arranged and ready for use at any time. -46- (7) Special safety and environmental protection plans for tasks such as work in confined spaces, hot work, and work at heights have been prepared. (8) The device passes the safety risk assessment organized by the regional branch. Chapter 5 Management of Emergency Shutdown and Resumption of Operation of the Plant Article 14 In the event of sudden significant operational fluctuations or abnormalities in the plant, actions shall be taken in accordance with the accident response plan to restore stability with regard to processes, equipment, and personnel safety, thereby preventing accidents. Article 15: Once the unit returns to a stable state, the workshop shall analyze the causes of operational fluctuations or abnormalities in the unit, preliminarily determine whether conditions for restoration exist, and report to the higher-level supervisory authority. If the conditions for resumption are met, operation is resumed in accordance with the startup procedures; otherwise, further shutdown actions are taken in accordance with the shutdown procedures. Article 16: After an emergency shutdown of the plant, a comprehensive analysis, inspection, and troubleshooting of the plant are necessary to eliminate potential hazards to the safe operation of processes and equipment, so that production can be resumed in accordance with the requirements for restarting operations. Prevent repeated unplanned shutdowns of the equipment caused by incomplete issue resolution. Chapter 6 Supplementary Provisions Article 17 These provisions shall be interpreted by the Refining and Sales Branch and the Chemicals and Sales Branch of the joint-stock company. -47 - Article 18 These provisions shall come into force as of the date of issuance.