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Corporate Environmental Declaration

Figure 1 Messer Slovnaft s.r.o.

Slovnaft area

Valid

InformationREG. NO. SK-002

2004 and 2005Update

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Company Address:

Messer Slovnaft s.r.o.Vlčie hrdlo, P.O.Box 54820 03 BratislavaTel: +421245245283Home page : www.messer-slovnaft.sk

Figure 2 Hydrogen Cylinder Carriage Truck Filling Plant

Accredited Environmental Auditor ASTRAIA ®, s.r.o. (Accreditation No. E-001, approved by SNAS on 23 February 2006)

confirms validity of this updated environmental declaration for Messer Slovnaftaccording to Regulation of the European Parliament and Commission No. 761/2001

®Managing Director of the Environmental Auditor ASTRAIA, s.r.o. RNDr. Daniel HELFER, 2nd October 2006, Nitra

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ContentsTitle Page Company Address Contents, Introduction, Basic Corporate Information, Environmental Protection Corporate Line of Business Corporate Policy Description of the Environmental Management System, Direct and Indirect Environmental Aspects Selected Basic Legal Requirements Relevant to the Company’s Activities Corporate Environmental Conduct Description of the Environmental Management System Certificate of Integrated Management System Certificate of Proper Manufacturing Practices Implementation Status of Long-Term Objectives Updated Corporate Objectives for 2006 Communication, Accident Control and Fees Person in charge of the Declaration

12345678910 11 12 13 14 15

IntroductionThe full environmental declaration for the company Messer Slovnaft was issued on 31 March 2004 and validated on 12 May 2004.

This update of the environmental declaration is intended to describe changes regarding environmental management system, environmental protection and evaluation of progress in the company’s environmental conduct, reflecting the company’s activities for the 2004 – 2005 period. All relevant environmental conduct-related information presented herein pertains to the period up to the 2005 year-end. Data and activities concerning intentions, objectives and improvements in environmental conduct were updated as at 30 June 2006.

Bratislava, 30 June 2006 Marián Gajarský SHEQ Manager

Basic Corporate InformationMesser Slovnaft, s.r.o. is a member of the multinational Messer Group ranking among the largest traditional world producers of

industrial gases. The company’s business activity lies in manufacturing, distributing and selling of technical, medicinal and special gases.

The company’s premises are located in the northern part of the Slovnaft premises, in a separate, fenced-off section, blocks 15 and 16 having a separate entrance.

The company is owned by Slovnaft, a.s., Vlcie Hrdlo, Bratislava, Slovak Republic, having a 49% share and Messer Griesheim Fünfte Vermögensverwaltungs GmbH Krefeld, FRG, having a 51% share.

Environmental Protection in the Context of Integrated Management System

The operation of the entire company is supported by the integrated management system as defined in the standards STN EN ISO 9001, STN EN ISO 14001, BSI OHSAS 18001, Responsible Care Program, Act of the NR SR No. 261/2002 on Prevention of Severe Industrial Accidents (SEVESO II) and the Regulation of the EC Commission No. 761/2001 (EMAS). The compliance with the requirements set in the standards, acts and recommendations above constitutes a guarantee for a successful running of the company and secures a considerate conduct of the company towards the environment.

Environmental protection and care is ensured in Messer Slovnaft using the following tools:• Organizational tools (clear and easy-to-review organizational structure of the company including accurately defined rights and

duties)• Documentation tools (documented procedures for activities closely linked to environmental protection)• Personnel tools (continuous development of professional experience and skills of the company’s employees in line with

the legal requirements relevant to the corporate activities)

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Corporate Line of Business

O2......................................................OxygenN2......................................................NitrogenH2......................................................HydrogenLuft ....................................................AirForm Gas ................................. ........Forming GasVFKL..................................................Liquefier

LZA..........................................Manufacturing Unit GAN........................................ Gaseous Nitrogen GOX.........................................Gaseous Oxygen TTA................................. ........Low-temper. Adsorber LIN ..........................................Liquid Nitrogen LOX .........................................Liquid Oxygen

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Being fully aware of the effects that our business activities might have on the environment in the surroundings of Bratislava and in Žitný ostrov region we regard environmental protection including pollution prevention and accident prevention as one of important priorities in our activities. We bear full responsibility for product quality and health and safety at work towards our owners, business partners, staff members as well as towards any population group concerned, local community and society at large. For this reason, Messer Slovnaft top management has decided to adopt the following intents or strategies: providing our customers with products and services corresponding to their requirements or expectations, and improving quality of our products on a continual basis in compliance with legislative requirements and regulations, providing for full foodstuff non-toxicity and safety of our products, identifying and minimizing risks, on a continual basis, for health and safety at work of our own staff, checking consistently compliance with all rules for safe work not threatening health and life, maintaining safe work and safe production by continual generation of favorable conditions for such work and such production, and continually improving the implemented integrated management system.

Towards that end Messer Slovnaft top management has assumed the following obligations:1. In regard to IMS

improving, developing and upgrading, on a continual basis, the implemented management system as an in tegrated management system in order to boost its efficiency, thus enhancing the efficiency of the whole system, creating conditions and resources for efficiency and effectiveness of the implemented integrated system, in tenders for delivery of work and services to the company, giving priority to contractors who already have implemented a QMS/EMS system or where implementation of such a system is in progress, and who honor principles of environmental protection and safe work in their activities, and in order to enhance environmental protection and safety at work standards in our company, cooperating with our own staff members, trade union established under the Chemical Industry TU of the SR, state agencies and state regulatory authorities, and local self-government authorities, and consistently using all forms of int. and ext. communication.

2. In regard to QMS providing for a permanent stability in product quality, complying with the production units’ technology regime in order to improve product quality, and identifying customers’ expected requirements.

3. In regard to EMS observing principles of Responsible Care, monitoring and evaluating the corporate environmental profile; identifying and evaluating environmental aspects, implementing measures leading to the reduction of waste generation, improving measures concerning reduction of accident risk and consequences of accidents, acting in line with the relevant requirements laid down by legal regulations as well as with any other environment-related requirements imposed on the company, and reducing energy demands of the production, thus contributing towards reduction of the use of nonrenewable natural resources.

4. In regard to SMS arranging for safety of the production and health protection of the staff as an integral part of employee care,

complying with legislative safety-related requirements in manufacturing, storing and dispatching the company’s products as well as in life and health protection of our staff members, providing for permanent identification, evaluation and elimination of risks and any potential threats of serious industrial accidents, and providing care to all persons located within the company’s premises (visitors, staffers of other companies working within the company’s premises) as well as to entrusted persons (as defined in regard to civil defense) with a view to eliminating or minimizing the risk of their endangerment.

All the company’s staff members are expected to accept the tenet that fulfillment of the above-mentioned principles and objectives and observance of all duties regarding the environment, health protection at work, prevention of serious accidents and safety in operating technological equipment is among the most important basic tasks of each employee in the company.

Bratislava 12. July 2006 Ing. Milan G A L A Managing Director

Messer Slovnaft Corporate PolicyMission:High-quality and Safe Production Minimizing Negative Impacts on the Environment

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Environmental aspects

Resources, training,

communication

Corrective and preventive measures

Emergency readiness

Operational mngmt

Analysis by management

Goals

Environmental policyLegislation and

other requirements

Programmes

Monitoring and

measuring Documentation management

Record-keeping management

Description of the Corporate Environmental Management System

Flow Chart 1 Modified Deming Cycle for EMAS

Relevant Environmental Aspects and Impacts of Corporate Activities on the Environment

Within the corporate operational process we constantly monitor and at given intervals or when the need arises (such as when planning new activities, or identifying a new, yet unrecorded environmental aspect or impact), we analyse revised envir onmental aspects and impacts of the corporate activities on the environment and its constituents. For the period starting 12 May 2005 there has been no substantial change in the operation of the company or in the prod ucts requiring any extensive updates in the environmental aspects monitored. One new indirect aspect has been identitied - construction activity.

ManufacturingManufacturingManufacturingManufacturing

MaintenanceCommon ActivitiesRoad MaintenanceSalt for winter road maintenance ( - )

Measuring and MonitoringManufacturingManufacturingVibrations ( - ) Important 5.ManufacturingNoise ( - ) Important 4.ManufacturingFreon R 22 ( - ) Important 3.Manufacturing2. Ammonia ( - ) ImportantManufacturingLubricating oils ( - ) Important 1.

OriginDirect Aspects

Block 15 on the company's premisesConstruction activities 17

16

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DispatchingSteel cylinders (packaging) Indirect aspect ( - )

DispatchingTransportation ( - ) Indirect aspect

OriginIndirect Aspects

6 Fluorescent tubes ( - ) Important 7 Electrolyte for analyzer Elcoflux ( - ) 8 9 Communal waste ( - ) 10 Degreasing preparation ( - ) 11 Molecular sieve ( - ) 12 Water consumption

13 Electricity consumption 14 Steam consumption

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PREVENTION OF SEVERE INDUSTRIAL ACCIDENTS SEVESO II.)

Selected Basic Legal Requirements Relevant to the Company’s Activities

ENVIRONMENTALLY-ORIENTED MANAGEMENT AND AUDITING

WASTE

Decree No. 490/2002 Coll. on safety management and emergency plan, as amended by the Decree No. 452/200 5

Decree No. 489/2002 Coll. applying certain provisions of the Act on Prevention of Severe Industrial Ac cidents and on Amendments and Supplements of Some Laws, as amended by the Decree No. 451/2005

on integrated life-saving systemAct No. 129/2002

on prevention of severe industrial accidents and on amendments and supplements of some laws, as amended by Act No. 525/2003 Coll. Act No. 587/2004 Coll. and Act No. 277/2004 Coll.

Act No. 261/2002 Coll.

issued to apply the Act on the system of environmentally-oriented management and auditing

Act on environmental auditing and registration of entities within the European Community for Environmental Management and Auditing, and on amendments and supplements of some laws

Act No. 491/2005 Coll.

WATER MANAGEMENT

on flood protection

Decree of the Ministry of Envir-onment of the SR No. 100/2005

on nature preserve with natural accumulation of waters in the Zitny ostrov region as amended by the NV SSR No. 52/1981 and Act of the NR SR No. 184/2002 Coll.

Ordinance of the Government of the Slovak Socialist Repub- lic No. 46/78 Coll.

on waters and on amendments and supplements of the Act of the Slovak National Council No.

372/1990 Coll. on transgressions as amended by subsequent regulations (the Waters Act) as

amended by the Act No. 587/2004., 230/2005, 479/2005, 532/2005 Coll.

Act No. 364/2004 Coll.

issued to apply some provisions of the Waste Act as amended by the Decree No. 509/2002 Coll. and Decree No. 128/2004 Coll.

Decree of the Ministry of Environ- ment of the SR No. 283/2001

on waste and on amendments and supplements of some lawsAct No. 223/2001 Coll.

Decree of the Ministry of Environ-ment of the SR No. 606/2005 Coll.

Decree of the Ministry of Environ-ment of the Slovak Republic No. 666/2004

stipulating details on handling of hazardous substances, on emergency plan requisites and on procedure handling extraordinary water quality deterioration

Generally Binding Ordinance of the Cap-ital of the Slovak Republic of Bratislava No. 12/2001

on communal waste treatment

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1998 101,4

1999 104,6

2000 115,0

2001 104,3

2002 105,9

2003 103,0

2004 106,6

2005 114,9

1 2 3 4 5 6 7 8

Production

1 2 3 4 5 6 7 8

1998 52650

199952003

2000 54351

2001 50942

2002 52344

2003 51081

2004 54295

2005 54659

Total Electricity Consumption

Year

98

99

00

01

02

03

04

05

Production (mil. Nm3) 1 01

105

115

104

105

103

107

115

Chart 1The company's production is second highest in its history. This result has been achieved thanks to increased deliveries to Slovnaft, a.s. - our greatest customer, and to product quality.

Year

98

99

00

01

02

03

04

05

Consumption (M W h)

5265

0

5200

3

5435

1

5094

2

5234

4

5108

1

5429

5

5465

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Chart 2The electricity consumption has obviously increased but as is displayed in Chart 6, the energy demand assumes favor-able figures when the amount of production increases.

1 2 3 4 5 6 7 8

1998248699 1999

2344412000

237330

2001 271886

2002323019

2003330618

2004331381 2005

328369

1998 - 2005

Water Consumption

Year

98

99

00

01

02

03

04

05

Consumption (m3)

2486

99

2344

41

2373

30

2718

86

3230

19

3306

18

3313

81

3283

69

Chart 3The water consumption has dropped for the first time since 2000. This has been caused by a consistent observance of the permanent production technology rules as well as by improved care for machinery and technological equipment.

20003,7806

2001 0,4

2002 0,5026

20037,17

2004 2,812

2005 4,8

Hazardous Waste Production 2000 - 2005

Year

98

99

00

01

02

03

04

05

NO Production (tons)

- -

3,78

06

0,4

0,50

26

7,17

2,81

2

4,8

Chart 4Figures concerning the hazardous waste production are not of much value because of irregular downtimes of machinery and technological equipment. In spite of that, the company still strives to reduce hazardous waste production.

Corporate Environmental Conduct

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2000 4,784

2001 4,6

20025,33 2003

5,3

2004 5,1

2005 5

Miscellaneous Waste Production

Year

98

99

00

01

02

03

04

05

Misc. Waste Production (tons)

- -

4,78

4

4,60

5,33

5,30

5,10

5.00

1995 0,552

1996 0,529

19970,526 1998

0,516

1999 0,497

2000 0,471

2001 0,488

2002 0,494

2003 0,496

2004 0,509

2005 0,475

Energy Demand 1995 - 2005

Year

95

96

97

98

99

00

01

02

03

04

05

E n e r g . Demand (KW/ Nm3)

0,55

2 0,

529

0,52

6 0 ,

516

0,79

7 0,

471

0 ,48

8 0,

494

0,49

6 0,

518

0,47

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Chart 5Production of miscellaneous waste (waste similar to communal waste) shows a decreasing trend in the com-pany mainly thanks to a more consistent separation of in-dividual waste components.

Chart 6Energy demands of the production expressed as energy consumption per unit of production show a growing trend when product deliveries to the company's greatest customer - Slovnaft, a.s., are low. But as can be seen for the year 2005, the demand drops following a boost in production.

Integrated Management System - An Effective Tool for Securing Quality, Safety at Work and Environmental

Protection

Creation of an integrated management system, its documenting, maintenance and improvement of its efficiency in line with the requirements set by substantial standards is a consequence of our effort to act according to our customers’ wishes, sell in the EU markets, be ahead of our competitors and recurrently attain excellent results. Therefore, it is necessary that all crucial processes and activities related to the needs of the integrated management system in the company are fulfilled.

The corporate activities (processes) are identified particularly with reference to the company’s mission (production programme, environmental protection, staff health protection and safety at work) and oriented to the customer, owners, affected group of citizens or public, our own employees, environment or any other parties that may be involved.

ISM is an integral system of management of the corporate activities. It is based on principles of the quality management system, environmental management system, health protection and safety-at-work management system (STN EN ISO 9001, STN EN ISO 14 001, Regulation of the EC Commission No. 761/2001, Responsible care principles, Act of the NR SR No.261 / 2002 (SEVESO), OHSAS 18001 and Foodstuffs Code of the Slovak Republic (HACCP)). However, it is not oriented solely to the quality of production, products and services but also to their influence on environment, health protection and safety at work.

10Figure No. 6 Certificate of the Integrated Management System

11Figure No. 7 HACCP Certificate

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Implementation Status of Long-Term Objectives for the Environmental Protection Programme as at 31 December 2005

being fulfilled on an ongoing

0,-€1 x annually

Environmental surveys

Strengthening of environmental awareness among the staff

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0,-€

4375,-€

0,-€

0,-€

1250,-€

1875,-€

3750,-€

3750,-€

defined by the contract

Cost

fulfilledSHEQ Manager 30 Dec 2005

Professionally Termovision measu-competent rement of LV distribu-

tion board and impor- tant engines

10

fulfilledHead of MachineMaintenance

30 Dec2005

Deployment of the mixing equipment

Restoration of the waste-heating sys-tem for the premises

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being fulfilled on an ongoing basis

Common supervision by the staffers

7

being fulfilled on an ongoing basis

with TTR Protection of coolingwater against pollution

6

the same as above (paragraph 4)

EA Manager 31 Dec 2005

Professionally competent body

Vibration measure-ment performed by an authorized body

5

This goal could not be fulfilled until the 2005 year-end due to problems in UVZ Bratislava laboratories

Production Manager

31 Dec 2005

Professionally competent body

Noise measurement performed by an au-thorized body

4

fulfilledSHEQ Manager 31 Dec 2005

Professionally competent person

Preparation of a safety report

3

fulfilledSHEQ Manager 31 Dec 2005

Professionally competent person

Preparation of a safety management system

2

fulfilled1 x annually

Employee training

Performance of emergency practice in cooperation with Group 4 Falck

NoteObjective

Table 9 Implementation Status of the Environmental Protection Programme for Years 2004 and 2005

Production Perm.1Manager

Compliance Production Manager

Perma-nent

Reduction of acci-dental pollution risk

SHEQ Manager Perm.

Perma-Three-degree nent inspection

basis

Method Person(s)Date in charge

body

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Updated Corporate Objectives for 2006

Figure No. 8 Manufacturing Unit

• Performance of transition audit according to the Regulation No. 761/2002 on EMAS Deadline: End of September 2006 Responsible: SHE&Q Manager and heads of individual departments

• Updates of the following: MP: Emergency Plan for Hazardous Waste Leakage Deadline: 2006 Year-End Responsible: SHE&Q Manager and heads of individual departments

• Re-approval procedure for the system management certificate based on principles of the international standard ISO 14001 Deadline: June 2006 Responsible: SHE&Q Manager

• Staff training in environmental protection Deadline: to be performed on an ongoing basis Responsible: SHE&Q Manager and heads of individual departments

• Performance of noise and vibration measurement in 2006 due to problems at UVZ laboratories Deadline: End of September 2006 Responsible: SHE&Q Manager

laboratoriesDeadline: End of September 2006 Responsible: SHE&Q Manager

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External Communication

As part of external communication, several negotiations were held with the state authorities during the 2004-2005 period.• District Environmental Authority Bratislava......Setting up of rescue service as defined 261/2002• Civil Defense Authority SR..............................Specification of details in civil protection plan• SAŽP COHEM Trnava.....................................Verbal communication regarding EMAS registration

• Customer communication................................No substantial changes• Communication with the Messer Group..........Communication within providing regular reports• Complaints from the public..............................None for the period monitored

Environmental InspectionNo inspection by state regulatory authorities was performed for the 2004-2005 period.

Accidents Affecting the EnvironmentNo accident occurred on the company's premises for the 2004-2005 period that would affect the environment, or health and life of the company staff, or any population group involved.

Fees and Fines for the Pollution of EnvironmentFor the 2004-2005 period, Messer Slovnaft paid no penalty for endangering or polluting the environment. As the company has no source of pollution (furnaces and smokestacks), it only pays common fees for refuse collection and treatment.

Figure No. 9 Manufacturing Unit

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Environmental Declaration prepared on the basis of Regulation of EC and Commission No. 761/2001 (EMAS)

Audited by ASTRAIA s.r.o. Mostná 13 949 01 Nitra

Person in charge of the Declaration Marián Gajarský SHEQ Manager Messer Slovnaft s.r.o.Vlčie hrdlo, P.O.Box 54 820 03 Bratislava Tel: +421245523741 marian.gajarsky@messer.slovnaft.sk

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Report on Validation of the Updated Environmental Declaration for Messer Slovnaft, s.r.o. for Years 2004 and 2005

Accredited Environmental Auditor ASTRAIA®, s.r.o.Mostná 13, 949 01 Nitra, Slovakia

(Accreditation No. E-001, approved by SNAS on 23 February 2006) confirms validity of this updated environmental declaration for Messer Slovnaft, s.r.o.

for the 2004-2005 period according to Regulation of the European Parliament and Commission (EC) No. 761/2001

The environmental auditor hereby confirms that the respective environmental declaration has been prepared in line with the requirements set out in Section 3.2,

Annex III of the above-mentioned Regulation and that all data and information provided therein have been documented by the registered entity and authenticated by the

environmental auditor, wherefor they are considered accurate, true and trustworthy, and simultaneously they are representative of the registered entity's environmental

conduct and relevant to its overall environmental influence. The environmental auditor also confirms that data and information constituting the updated environmental

declaration have been used appropriately. The next full environmental declaration for Messer Slovnaft, s.r.o. must be validated on 11 May 2005 at the latest.

Managing Director of the Environmental Auditor ASTRAIA®, s.r.o. RNDr. Daniel HELFER, 2nd October 2006, Nitra