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SUSTAINABILITY REPORTPreventive measures on pipelines include both diagnostics and repair;older pipes are replaced with new ones that have an anti-corrosioncoating. Regrettably, this work is not being done with sufficient speed.One reason is that there is a backlog of pipes installed in the '80swhich often age prematurely because of their poor quality or improperpipeline construction.The Company conducts drills and training in the proper responseto emergencies and in the prevention and minimization of negativeenvironmental impact.It is difficult to make contractors observe safety regulations eventhough the number of their violations is quite significant. This situationcalls for expanding and revising the standards that contractors mustmeet, and they must also be made accountable for any violations.Preventive approach: minimization of impactat the planning and design stageThe Company implements "Guidelines For the Development ofIndustrial, Occupational and Environmental Safety and For thePrevention and Handling of Emergencies Within Draft and ProjectDocuments for Construction, Reconstruction, and TechnologicalRefurbishment of LUKOIL Group Industrial Facilities". The Guidelinesintroduce the Institute of Corporate Expert Evaluation and the AnnualWorkplan which covers the Company's major investment projects.OAO LUKOIL also implements the standard "Preliminary Design andProject Documentation: Content Requirements and Guidelines forManaging the Issues of Industrial, Occupational and EnvironmentalSafety, and Emergency Preparedness". The standard sets forth requirementsfor preliminary designs and project documents concerning:effective protection of staff, population, the Company's facilities andthe surrounding areas from natural or technological emergencies;effective resolution of civil defence issues;compliance with environmental safety requirements for facilities beingdesigned and providing for rational use and recovery of water resources;88