NOVA Chemicals

1

LOGISTICS

• NOVA Chemicals
• NAR Success Story
• 2004

2
2004 Annual Shipment Summary

• Total Hazardous Materials Shipments via Railcar
  2004
• Total Outbound Tank Car Loads
• 1,946,965,165 LBS
• 11,803 Carloads
• Propylene,Isoprene,Butadiene,Styrene
• Total Outbound Residue Tank Car Releases
• 5,257 Cars
• Butane,Propane,Hexene,Octene
• 7 Sites in U.S. Canada

Rail Asset Management
There were zero NARs reported for 2004
3
Best Practices

• Executive Leadership Support
• Internal NOVA Chemicals Railcar Committee
• Internal Logistics Responsible Care Council
• Railcar Inspection and Awareness Training
• KPI reporting
• Management of Change
• Incident Learning Process

Rail Asset Management
NAR incident reduction is a top priority
throughout NOVA Chemicals
4
Leadership Objective

• Responsible Care Performance Improvement is a
  primary objective of NOVA Chemicals and is
  supported by our President and CEO and throughout
  the entire organization.
• NOVA Chemicals actively participates in the
  American Chemical Council (ACC) and Canadian
  Chemical Producers Association (CCPA) and is
  fully committed to Responsible Care Initiatives.
• NAR and Transportation Incident Performance is a
  key performance indicator (KPI) that is monitored
  and reviewed monthly by leadership teams.

Rail Asset Management
2004 Target Objective is 1 NAR for each 130KT
shipped
5
NOVA Chemicals Internal Railcar Committees

• NOVA Chemicals Tank Car Committee
• Feedback from site logistics operations
• Commodity Specific Railcar Specifications
• Bottom Outlet Valve Removal
• Ball Valve Replacement with Angle Valve
• Vacuum Relief Valves Removed
• Gasket Matrix
• Torque Guidelines

Rail Asset Management
Shared industry trends combined with operational
experience in railcar logistics leads to best
practices in the supply chain
6
NOVA Chemicals Logistics Responsible Care Council

• Internal Working Group consisting of key
  logistics personnel from U.S./Canada/Europe
• Recommend NAR Targets
• Site Security and Transportation Security Seals
• Internal Audit Protocols Facility Self
  Assessments
• Customs-CTPAT
• Regulatory monitor
• NOVALERT Emergency Response

Rail Asset Management
working committee who meets regularly to support
Corporate Responsible Care Council Objectives
7
NOVA Chemicals Training

• Railcar Inspection and Awareness Training
• Standardized program for all sites/loaders
• N2 Purge as final check for leaks
• Key Maintenance Provider Network
• On-site Mobile Services Available
• Preferred Shop Network
• Dedicated Loading Personnel
• Employees who desire to load rail versus
  rotational scheduling of employees

Rail Asset Management
Training and Maintenance are key elements to
ensure our rail assets are maintained for safe
efficient transport of our commodities
8
Key Performance Indicators (KPI)

• Monthly Performance Metrics include
• Transportation Incidents
• NARs
• Fill Efficiencies
• Regulatory Updates Monitored
• Industry Participation
• AAR Circular Updates

Rail Asset Management
KPIs are monitored for continuous improvement in
all functional areas
9
Management of Change Documentation

• Management of Change Process
• Includes Inbound Raw Materials
• Car Specifications
• Loading/Unloading Facilities Upgraded
• Minimize NAR Potential
• Change of Service
• Fleet re-assignments
• Backhauls

Rail Asset Management
Formal risk review is conducted as part of the
MOC and all key stakeholders must approve the
change of process
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Incident Learning Process

• Formal Incident Learning Process is established
• Anyone can initiate
• Responsibility and Accountability for all
  involved
• Reviewed and Communicated

Rail Asset Management
ILP process is an effective means of identifying
root cause and communicating incidents within the
company