Remediation

The hydrocarbon and petrochemical operations of MOL Group companies and its legal predecessors have caused pollution to the soil and groundwater at several locations over the past decades, and management and re-cultivation of these sites falls under the scope of our environmental liabilities.

Our goal is prevention
Experience gained over the past decades has fully confirmed the observation that prevention is critical, thus our top priority is to ensure permanent monitoring of the environment in addition to continuously modernizing and controlling our underground equipment. This outstanding focus can enable us to obtain in–time information on any eventual emergency or pollution events caused by third parties, and helps to quickly and efficiently minimize damages arising from such events. Though remediation and re-cultivation action is the clearly the first priority, it is also very important that the causes of events are appropriately analyzed, and the results of such analysis are fed back into the technical and administrative processes of the control / audit systems.

Remediation of damages inherited from past operations
Management of inherited damages or pollution. Management of damages inherited from past operations is significantly more difficult than the remediation of new events. We have sites which have been in industrial use for more than 100 years, and the difference between the former and present equipment is enormous – this is specifically true for the past 15 years or so. In addition to the former mentality and attitude towards pollution as additional critical factors, we must also refer to the fact that in certain sites we can still identify the negative impacts of 20th century wars - for example in our facilities located in Croatia.

As the task is huge and complex, we have a Group-level program for coordinating and harmonizing remediation activities. The parent company laid down the foundations for this program and takes great care to ensure that the remediation of liabilities of new member companies can also be implemented within the same framework and according to a pre-defined timeline, as a key part of our business culture. This is how similar remediation programs have been implemented and closed, or are successfully in process in Slovakia and Hungary in the territory of refineries, petrochemical facilities, logistic depots and filling stations. We wish to use the same or similar guidelines in IES (Italy) and with INA, the Croatian petroleum giant.

A risk-based approach
Guidelines for remediation tend to be developing towards a so-called risk-based approach. This method is based on actual human health and environmental/ecological risks, permanently replacing the strict limit-based approach (which sometimes sets unrealistic requirements). The essence of the risk-based approach is that we have a chance to differentiate between remediation methods and also to utilise them corresponding to clear priorities.

The limit-based approach overlooked the fact that the same level of pollution can present significantly different problems at different locations. Consequently this approach from time-to-time required an ‘excessive’ response, whereas sometimes it ‘ignored’ risks arising from pollution at levels below the statutory limits. In certain situations the most urgent action is to save the persons who bear the impact of risk, and in these cases we can not wait for the results of the remediation process (as it typically takes years), and it may also happen that we find out only years later that remediation of the given pollution is technically not possible.
In most areas of our operations in Europe there are no specific regulations or procedures covering remediation of pollution to the soil and groundwater, but we expect that the relevant practices will be gradually adopted into the national laws, in accordance with the European Union integration efforts. As we can implement remediation operations even if we have no formal liability pursuant to the laws of the given country, our existing practices ensure that we maintain our remediation activities along the same or very similar guidelines.

Using the risk-based approach can enable us to engage in prompt and efficient intervention at most sites with a focus on preventing pollution from spreading. This effort is supported by the use of improved so-called ‘barrier-technology’.

Research project for innovative technology
MOL and TVK successfully submitted an application in 2008 to the National Office of Research and Technology. The process was published as part of the National Technology Program with the purpose of improving the competitiveness of the economy and supporting sustainable development. The research consortium received a 777 MHUF non-refundable grant for a four-year research project involving various research institutes and environment protection expert companies. The research project, entitled “The Chemical industry and a liveable environment – development of innovative technologies in the protection of the environment” is based on results of international and domestic research and primarily focuses on the improving the application of barrier technologies, but it is also aimed at the development of other in situ technologies which have no or minimal energy demands, produce low amount of waste, typically need only small capital expenditure and have low operating costs and can be managed on-line.

The scope of our innovation research project fits the international trend that remediation operations are encompassed by ideas about sustainability. Our participation in international professional organizations can enable us to follow the said efforts, and, when evaluating any remediation options, to consider future economic, environmental and social benefits based on a standardized system.

For more information about remediation can be found in MOL Group’s Annual Reports: 2009 and 2010.