5-Year Process Hazard and Risk Assessment Approach NOVA Chemicals Fred Henselwood September 20th, 2018

What is Process Safety? Definition – https://www.aiche.org/ccps/about/process-safety-faqs “Process Safety is a blend of engineering and management skills focused on preventing catastrophic accidents, particularly explosions, fires, and toxic releases, associated with the use of chemicals and petroleum products.” - Center for Chemical Process Safety For NOVA Chemicals: Layers of Protection is the engineering, operating, and maintenance management model being developed for the prevention of Process Safety incidents. This model is based on the concept of multiple lines of defense. Operations Engineering Maintenance

For New Construction or Changes Build it Safe – consistent with Leading Industry Practices Internal Loss Prevention Standards: Provides a Risk framework addressing what is and is not acceptable to the organization Direct users towards industry leading practices Encourage the application of inherently safer design principles Focus is on determining what safeguards are needed (Engineering Standards would then address how you design and build these safeguards) Facility Change Management Program Direct users towards the Loss Prevention Standards Provides a governance system for Changes

5-Year PHRA Program Make Sure it Remains Safe – Consistent or better than RAGAGEP Every asset is looked at for Health/Safety, Environment, or Catastrophic Loss Potential on a 5-year basis Risk based approach with escalation (Credible, Risk Matrix, LOPA) Delivers a list of Independent Protection Layers (IPLs) Inputs into the PHRA would include incident histories, changes made, status of previous recommendations, changes in science, changes in receptors, completeness of previous studies and recommendations… Summary Report generated and reviewed with Leadership Recommendation Plans completed Interim risk reduction measures considered

Management Systems Collaborative Ownership of Process Safety Collection of regional and corporate councils to oversee Process Safety Management Representation from Engineering, Operations, Maintenance, and Risk Management Provide both direction and resources for Process Safety related activities Review of Process Safety Incidents Review of Process Safety Metrics (Leading/Lagging) Initiation of Task Teams Ensures functionality of IPLs at the desired performance level

Layers of Protection “Onion Skin Diagram” Community Emergency Response Plant Emergency Response Mitigation Post Release Systems Prevention Critical Alarms & Intervention - Safety Instrumented Systems - Physical Protection Systems Control and Monitoring (BPCS) Inherent Safety Process Chemistry - Process Equipment and Design Intent

CSA Z767-17 6.3.10 Revalidation of the risk assessment No mention of Safety Case 6.3.10 Revalidation of the risk assessment The risk assessment shall be completed whenever there is a change to the facility, operation, or operating environment that is outside of the context of previous risk assessment. Revalidation of the risk assessment shall be done in a period not to exceed 5 years, from the date of the previous assessment.

Trademark Acknowledgments Advanced SCLAIRTECH™ and SCLAIRTECH™ are trademarks of NOVA Chemicals. ARCEL®, DYLITE® and NOVACAT® are registered trademarks of NOVA Chemicals Inc. SCLAIR® and SURPASS® are registered trademarks of NOVA Chemicals Corporation in Canada and of NOVA Chemicals (International) S.A. elsewhere; authorized use/utilisation autorisée. NOVAPOL® is a registered trademark of NOVA Brands Ltd.; authorized use/utilisation autorisée.