1.3 Occupational Health and Safety

Natural gas is a chemically active, easily ignitable and inflammable substance. In case of emergencies caused by technical failures or natural phenomena, which may affect gas transmission facilities, such facilities can be a hazard to environment and neighboring industrial and residential infrastructure.

Supporting of Operational and Environmental Safety of the Gas Transmission Network (GTN) and Prevention of Negative Impact on Population and Environment

To improve the working environment, reduce accidents and prevent injuries the company performed a number of actions in all the company subdivisions in 2006-2007.

Thus, prevention and avoidance of accidents at the Company's main gas pipeline facilities (MGP) is mainly implemented through:

Securing of accident-free operations of the MGP;

Monitoring of compliance with the requirements of the Uniform System for Occupational Safety Management (USOSM) in gas industry, standards and codes of occupational safety, fire safety, environmental protection and operational safety.

Measures aimed at prevention and minimization of accidents and localization of hazardous emissions, include:

Establishment of emergency repair divisions in each of the business subdivisions;

Adoption and regular update of the accidents response plans for MGP facilities;

Building up of spare capacity and reserve degree of safety at the MGP sections at the river crossings, natural and artificial obstacles, near compressor stations and populated settlements;

Construction of fences and ridges around compressor and gas distribution stations and valves facilities ;

Increase of glass areas in compressor stations and other explosion hazardous premises;

Regular surveillance of MGP routes;

Ongoing outsourced security service and fire protection of MGP.

Measures aimed at enhancement of fire and explosion safety include:

Renovation of automated fire fighting systems at gas compressor block boxes;

Installation of automated fire alarm and control systems in the buildings and premises;

Use of fire proof and explosion safe equipment at the MGP facilities, compressor and gas distribution stations;

Installation of automated monitoring and protection against air gas pollution and automatic switching of accident forced ventilation in industrial buildings;

Setting of regular monitoring of air condition in places of potential accumulation of hazardous gases and when performing of gas hazardous and welding works.

The industrial sites and operational facilities are equipped with improved automated control systems, able to suspend operations and send an alarm, linked to integrated station protection systems which ultimately may shut down compressors units when critical parameters are exceeded.

Occupational health and safety rely on creation of the safe working environment and corporate policies adopted to regulate the health safety in KazTransGas. KTG employees are provided with reliable and safe tools and instruments, protection cloths and footwear, tested and effective individual protection kits, medical kits and sanitary means.

With respect to assessment of the impact of potentially hazardous industrial activities on the employees' health and to prevent occupational diseases, the Company carries out regular medical examinations. The results of medical examinations combined with the data of laboratory testing of the working stations are further analyzed and used for elaboration of measures aimed at reduction of negative effect of hazardous industrial impact.

Special occupational safety offices located in every subdivision of the Company's branches are equipped with visual aids, promotional materials and technical documentation used in consultations, lecturing, trainings and filmed studies.

Technical training of the employees became an important element in enhancing operations safety. The company employs all the existing methods of technical training and qualification upgrading: probation exposure, training courses, briefings and individual trainings.

Regular examination commissions (REC) examine the staff for the knowledge of the technical and legislative requirements, codes and standards effective in the Republic of Kazakhstan.