PS 1: Social and Environmental Assessment and Management Systems.
Environmental and Social Assessment: The potential environmental, social, and health and safety impacts and risks associated with this Project are essentially the continuation or small increase of existing impacts / risks associated with continuity of business/service, including: (a) methane emissions from fugitive leaks and venting activities from regular operation and maintenance, (b) noise, vibration, dust, increased erosion, and other construction related impacts from earthworks and excavations as a result of pipeline installation associated to both, gas distribution network expansion activities and maintenance and replacement of existing ones, (c) solid waste and hazardous waste generation, (d) any potential risk to community health, safety, and security associated to the exposure of communities to hazards from gas leaks and/or explosions, as a result of accidents and pipeline ruptures caused by in-house staff, contractors, third-party activities (outside contractors and the public), and natural events (e.g. earthquakes), and (e) impact on natural habitats during construction of gas distribution systems in newly developed rural or peri-urban areas, if any. The only major new pipeline that is expected in the next few years is a 3-km sub-marine pipeline across the Marmara Sea to complete the loop and provide better supply security to the network.
Management Program: The development and international certification of a Quality, Environmental, and Occupational Health and Safety Management System was a requirement of Izgaz’s Distribution License, that needed to be finalized no more than eighteen (18) months after the license was granted. Izgaz has a well developed integrated Environmental, Social, and Occupational Health and Safety (ESH) Management System which was ISO 14001 and OHSAS 18001 certified in March 2006 by TÜV Nord. Certificate inspections are performed every six month and full recertification takes place every three years. Therefore, TÜV Nord performs inspections twice a year and recertification is currently in-progress (April – May 2009). Additionally, the Directorate of Environmental and Forestry Ministry performs yearly compliance Audits, as well as EMRA. An internal audit is done twice a year.
This integrated ESH management approach is documented in great detail and includes a Corporate EHS Policy, an extensive EHS Handbook, a total of 15 procedures and processes, and over 100 standard process instructions, formats, and supporting documentation. The EHS handbook includes general framework for Izgaz’s mechanisms to assess environmental, social, and health and safety impacts and risk of its activities and a description of the applicable plans and procedures to manage such impacts and risks. The Occupational Health and Safety aspects of this system will be described in detail in the PS2 section. In terms of environmental and social management the system includes procedures to: (a) identify and document environmental and social aspects and of Izgaz’s operations, (b) identify environmental and social risks and hazardous situation/activities, (c) minimize, mitigate and manage environmental impact, (including procedures such as internal inspections, waste management, emissions/noise emission monitoring and control, resources use, including efficiency targets and monitoring, (d) spill prevention and emergency response, (e) external Communications, (f) training, and (g) reporting.
The EHS Handbook sets the general aspects of the issues mentioned above, and makes reference to more detailed plans and procedures, associated with the different environmental and social aspects (e.g. solid waste management procedures and reporting, contingency plan, etc).
In the cases that either construction associated to new connections and/or regular maintenance activities require or imply:
the physical displacement of people (i.e. illegal squatters); Izgaz does not have a specific procedure to assure that the resettlement of people is avoided whenever possible, and if no alternatives are technically or economically viable, any needed resettlement would be performed in compliance with IFC Environmental and Social Performance Standard PS5 on Land Acquisition and Involuntary Resettlement. Natural gas distribution pipelines are normally installed along streets or other existing rights-of-way, and therefore only few occasions arise where right-of-way acquisition or resettlement may be required. It should be pointed out, however, that three of the RMS stations are installed in properties that are still in the process of being acquired, and the headquarters facilities are located in Municipal lands.
impacts on natural habitats or indigenous peoples or territories; Izgas does not have a specific procedure to assure compliance with PS6 on Biodiversity Conservation and Sustainable Natural Resources Management or PS7 on Indigenous Peoples. These events/impacts are very unlikely, given that Izgaz’s current projects and service areas (distribution network concession) are located in a highly intervened urban and peri-urban area, and are not expected to negatively impact any critical natural habitat or indigenous people or territories.
impacts on cultural or archeological sites; Izgaz does not have a “Chance Find” procedure in case that there are archeological finds during excavations. There is a low risk of archeological finding associated with Izgaz activities, because their excavations are superficial (less than 2.5 meters deep) and their influence area is not a known to host archeological or ancient cultures vestiges.
increased erosion, river crossings, or sub-marine works, Izgaz does not have specific procedures associated to erosion control and soil conservation, nor special procedures associated to river crossings or the laying of sub-marine pipelines.
Prior to Financial Closure, Izgaz has committed to update their EHS handbook to include a specific procedure to screen applicability of, and as necessary assure compliance with, IFC’s EHS PSs such as Land Acquisition and Involuntary Resettlement (PS5), Biodiversity Conservation and Sustainable Natural Resources Management (PS6), and Indigenous Peoples (PS7), as well as the development of specific procedures for Soil Conservation and Erosion Control. Additionally, Izgaz will develop a River/Surface Water Crossing procedure and Procedure for laying Sub-marine pipelines before the company undertakes any relevant construction work in such areas. Furthermore, and action plan to resolve all the pending land acquisition will also be presented to the IFC prior to Financial Closing.
Organization: Izgaz has an Environmental, Social and Occupational Health and Safety (EHS) Department, headed by an EHS Director who manages a group of (15) fifteen people, (10) ten Izgaz employees and (5) five contractors. It should be noted that (5) five of these people work in the Emergency Center, which as described under the PS4 Section, work in two shifts, 24/7. The main responsibilities of this group are to: (a) develop, implement, and enforce Izgaz’s EHS corporate policies, plans, and procedures, (b) identify and assess potential environmental, social, and health and safety impacts and risks associated to EHS existing activities and proposed projects, (c) assure the presence of programs, procedures, and performance measures to avoid, reduce, mitigate, remediate, and/or compensate all identified impacts and risks, (d) supervise and monitor compliance with Turkish and lenders HSE requirements and with Izagaz’s HSE programs, (e) establish appropriate corrective actions in case of non-compliances, (f) provide training to all relevant people within the organization with responsibilities for implementing these programs and measures, and (g) report on environmental, social, and health and safety performance to upper management and other relevant stakeholders. This group is also responsible for assuring that all the relevant EHS studies and/or compliance reports are performed and that all EHS licenses and permits are granted and kept up-to-date, and that EHS practices of contractors are compliant with Turkish regulations and with Izgaz’s EHS Policies and Procedures.
Training: Izgaz takes training of its employees as well as contractors very seriously. Training is an integral part of the yearly programming, and it is included in EMS procedures SR.62.01-Training Process and PR.44.02 - Communication Procedures. Izgaz offers training in different procedures of the EHS Handbook such as first aid, emergency response, fire control, earthquake response, and quality, environmental and occupational health and safety procedures, among others. In 2008, Izgaz provided a total of 280 hours of training in ISO9001, ISO 14001, and OHSAS 18001 alone. Additionally, the EHS Department reported a total of 413 hours of training in quality control, EHS, and civil defense for 2008, which averages approximately 26 hours (three days) of EHS training per employee. Furthermore, once a year, Izgaz holds an EHS Awareness Week with the participation of the whole organization. In 2009 this week performed on May 4-10.
Monitoring: Izgaz several procedures targeted at performance monitoring, defined in FR 43.02- Environment Dimension and Effect Evaluation. This includes monitoring of emission and discharges of standard pollutants, as well as natural resources consumption and compliance with the EMS procedures by Izgaz and contractors. Additionally, once a year other general issues are checked such as: increase in environmental accidents, usage of new materials or equipment, start of new activities, changes in EHS regulations, development of new technological, and EHS impacts associated with the investment plan for the year.
Reporting: Annual HSE reports are elaborated by the EHS Director, but are not delivered to the Environmental Agency. Annual and monthly HSE Reports are submitted to EMRA, the Ministry of Labour and Social Safety, and to the Turkish Statistic Authority according to the Information Law No. 4982.
Pollution Prevention (PS3) : As stated above, the environmental impacts for this type of operation are quite limited, and are mostly (a) fugitive methane emission from leaks and venting activities, (b) combustion emissions and noise at pressure regulation stations (RMS), (c) solid waste and hazardous waste generation from regular operation and maintenance activities, and (d) temporary increase in noise, vibration, dust, erosion, and other construction related impacts from earthworks and excavations as a result of pipeline installation associated to both, gas distribution network expansion activities and maintenance and replacement of existing ones. The EHS Handbook includes procedures to mitigate and manage all these direct emission, discharges, and impacts.
Air Emission: Izgaz air emissions are (a) emission from point sources such as generators, and boilers (8 boilers and 2 generators), (b) emissions from the operation of vehicles and heavy equipment, and (c) dust emissions generated during site excavation and soil movement, from contact of construction machinery with bare soil as well as exposure of bare soil and soil piles to the wind. Izgaz has an air pollution management plans for metering and monitoring most of these emissions; cars, boilers, and generator’s exhausts are regularly checked. Izgaz has a standard procedure for dust control, and reports point source air emissions values in compliance with Turkish regulation and in line with industry practices.
Air Quality: It is important to note, that Izgaz''s investment plans and the expansion of the gas distribution network, will contribute to a more efficient use of natural gas and the substitution of more polluting fuels, (e.g. fuel oil or diesel by industrial and commercial clients, and lignite by households) which are likely to result in improved air quality in Izgaz''s influence areas. There are four (three permanent and one mobile) ambient air quality monitoring stations in Kocaeli region, that have been erratically operating for the last four years. Measured results from these stations indicate an improved air quality with the introduction of natural gas, especially in the winter months.
GHG: This project will result in an overall reduction of the climate footprint of Kocaeli’s metropolitan area (Izmits) energy use, as it will substitute more polluting fuel use in industry, businesses, and homes. The gross climate footprint of Izgaz was calculated based on the methane emissions as a result of leaks and other inefficiencies / losses, its natural gas use and electricity consumption from the grid, and the fuel use of its 80-mobile vehicles fleet (e.g. fuel oil). The total green GHG emission for Izgaz in 2008 was 48,788 tCO2-eq. These emissions were distributed between the different components as follows: 47,299 tCO2-eq from fugitive emissions, 581 tCO2-eq from fuel oil use, 581 tCO2-eq from internal consumption of natural gas, and 327 tCO2-eq derived from electricity purchased from the grid.
Noise: All RMS belonging to Izgaz generate a constant noise, mainly from the operation of the compressors. The Company has a noise monitoring and mitigation plan that includes measurement when (a) there are complaints from either the employees or neighbors, (b) there is a change in processes that could modify the noise pressures, and (c) there is the addition of new machinery or equipment. When a new machine or equipment that might raise noise level is bought it is evaluated according to procedure FR.44.09 - New Investment Environment. Noise measurements are also done for construction equipments (e.g. machines for soil excavation). Additionally, before laying down new pipelines or performing any new construction works or transporting and delivering materials, Izagaz has to obtain noise permit. Noise emission levels are compliant with Turkish Environmental Noise Assessment and Control regulation as well as WBG PAAH values for industrial zones. However, it is noted that in a couple of RMS there has been a continued problems with complaints from neighbors about noise. This represents a complex situation as, even though the RMS sites are technically considered industrial zones, in reality they are mixed residential, commercial, and industrial. In most cases the RMS stations were constructed prior to the residences, but baseline noise values do not exists. For instance in the RMS-A Eastern Köseköy there have been complains about the noise from neighbors living in nearby apartment building; measurements indicate values at the closest receptors of 42dB[A] and 57db[A] with close and open windows, respectively. Izgaz has included noise abatement measure to reduce the noise associate to their activities, such as additional cover to boilers and compressors at the RMS-A – Eastern Köseköy, and they are committed to continue to manage this situation to the satisfaction of the affected neighbors. Within 90 days of Financial Closing, Izgaz has committed to present a schedule to perform a noise baseline evaluation on the nearest receptors of facilities located in mixed residential/commercial/industrial zones, and based on this study present a two-year action plan to provide a financially viable noise abatement solution in problem areas.
Solid and Hazardous Waste: Izagaz has specific procedure to handle and dispose both hazardous and non-hazardous waste, including minimization, reuse, and recycling. (a) The hazardous waste generated by Izgaz includes batteries, accumulators, e-wastes, and some medical waste. After classification its collection, transport, recycling, and disposing is sub-contracted to two certified and licensed companies: Izmit Waste and Residue Treatment, Incineration and Recycling Co. Inc. (İZAYDAŞ) and Doga Entegre Geri Dönüşüm Endüstri A.Ş (DOĞA). The first, İZAYDAŞ, operates an incineration plant with an annual capacity of 35,000 tons, a laboratory, and a sanitary landfill. The latter, DOĞA, is a fully integrated recycling company with an ISO 14001 certified Environment Management System in the fields of Automobile, Metal, Tyre, CRT and Electrical-Electronic waste. Izgaz monitors hazardous waste generation, and for 2009 it has set the goal to reduce it 5%. A shortcoming is that hazardous wastes are stored in the same building with chemical materials. This storage shelter is next to the Sea of Marmara, and has deficiencies regarding roof, door, locks, and ventilation. Within 90 days of Financial Closing, Izgaz will present a plan to correct this short coming, and store hazardous waste according to best industry practices. (b) The non-hazardous waste generated by Izgaz includes paper, plastic, wood, metal, domestic waste, excavation waste, among others. Izgaz has a Waste Management Plan to deal with non-hazardous wastes. Izgaz performs quantitative monitoring of the non-hazardous waste generation, excluding domestic and excavation wastes, according the Waste Monitoring Form FR-44.01 and/or the weighbridge receipt. Data on non-hazardous waste for the year 2008 reached a total of 4730 kg, including 480 kg of glass, 1601 kg of plastic, and 1400 kg of wooden wastes.
Natural Resource Consumption: The consumption of natural resources is monitored according to FR 45.03 - Environment & ISG Parameters Monitoring List. Additionally, to evaluate the environmental effects associated with natural resources consumption, Izgaz also has FR 43.05 - Natural Resources Consumptions Environment Dimension Evaluation, and the Company has a Natural Resources Management Plan that defines monitoring and establishes annual reduction targets for electricity and natural gas consumption, as well as water and vehicle’s fuel oil use. The goals of this plan include the reduction of natural resources consumption and an increase in the use of renewable energy (e.g. solar). The 2009 target is to reduce 5% the use of electricity, water, natural gas (heating, industrial), fuel oil, and paper.
Waste water: The waste water generated by Izgaz activities is limited to domestic waste water from the headquarters building and the RMS-A permanently staffed. The first is connected to city sewers and treated with the rest of the domestic sewage of the City of Izmitz. The waste water produced in the RMS-A stations is collected and treated in septic tanks.
PS 2: Labor and Working Conditions
HHRR: Izgaz has a well developed Human Resources (HHRR) Department, staffed with a total of fourteen (14) professionals, including two full time health specialists that work in the health unit. The core document guiding HHRR actions and activities is the Personnel Regulation, which includes compliance with Turkish Labor Laws, non-discriminatory hiring and promotion policies, as well as a grievance mechanism. All these documents are provided to every employee and are available via Izgaz’s intranet site; also contracts with job description, responsibilities and benefits, etc. are fully disclosed to each employee prior to hiring. In compliance with Turkish Labor Law, Izgaz hires four ex-convicts and ten handicapped people. The Grievance Mechanism involves a written procedure where employees and employers can express any complaints or disagreements, and includes the potential participation of a formal 8-member disciplinary board who may get involved when needed and would manage solutions with confidentiality and non-retaliatory practices. HHRR Department manages (a) general employment terms and conditions, (b) position descriptions and requirements, (c) training, (d) social security and occupational health and safety, (e) work schedule, (f) wages and benefits, (g) vacation and leaves, (h) performance evaluations and promotions, (i) position changes, (j) termination and severance, (h) disciplinary conditions, among others.
Even though in Izgaz’s Personnel Regulation there is no specific statement with regard to allowing employees to form unions and bargain collectively, it does state that it must comply with Turkish Labor Laws which in fact includes the ILO Declaration on Fundamental Principles and Rights at Work. Izgaz employees are not unionized, and Izgaz does not have any collective agreement with its employees, however there is no evidence of restrictions on employees’ freedom of association. Reportedly there is no benefit to the employees to join unions, since Izgaz’s employment package is competitive, where Izgaz minimum salary is over twice minimum legal wage for Turkey. There have been no reported labor issues, protest, or known workers strikes or slowdowns associated with Izgaz. There are a total of 11 existing labor law suits, which were pending before the privatization process. Labor Audits are performed once a year by the Directorate of Labor and Social Security.
Izgaz has a total of 285 employees, 71 white-collar and 214 blue collar employees. Additionally there are a total of 79 contracted employees. White-collar employees include the general manager and deputy general managers, managers of different fields and their deputies, chiefs, supervisors, experts, and engineers. Blue-collar employees consist of meter reading personnel, emergency teams, office employees, customer relations personnel, station technicians and excavation control personnel. The ratio between male and female employees is approximately 6/1, with the average age of 34-35 years old for both males and females. The gender disparity with a strong male dominance of the workforce, does not respond to discriminatory policies or practices, but to the nature of the work and the sector.There are approximately 25 employees in total who will be entitled to their retirement between 2008 and 2012.
Some operational areas as well as the emergency call center need personnel 24/7, and therefore include three 8-hour shifts. All other units of Izgaz work weekdays from 8 a.m. to 5 p.m. According to the Personnel Regulation, the total labour time per week is 42.5 hours for normal working hours and 40 hours for employees who work by shifts, and includes norms and amounts for overtime pay. Salaries of the employees are determined by the Company’s Management according to education and are paid monthly (first day of the month). The salaries of the general manager and the deputy general manager are determined by the Board of Directors. Salaries are increased by the Management considering inflation rate and market trends, and approved by the Board of Directors.
With the changes associated with the privatization and potential changes in management structure, GDFS has no plan to reduce the workforce, so no major retrenchment activities are planned. There may be the need to move some people around and train them to be able to perform new tasks, but no personnel reduction is planned. At any case, prior to Financial Closing, Izgaz will present a modification to its Personnel Regulation to include a Retrenchment Process.
Izgaz HHRR department initiated the process of SA8000 certification. Ninety days (90) days after Financial Closing, Izgaz will present the road map to achieve SA8000 certification.
Occupational Health and Safety: As stated above, Izgaz has an integrated environmental, social, and occupational health and safety management approach, encompassed in an ESH Management System which is certified by ISO 14001 and OHSAS 18001. Additionally, and in compliance with the Turkish Labor Law 4857 a Labour Health and Safety Committee was established. This Committee meets once a month and it is composed of a nurse, workers representative, safety engineers, and one outside guest.
Izagaz performs a medical check-up to all employees prior to hiring to determine their health condition baseline, and this is followed by periodical health checks. Medical services are also provided to contractors.
Occupation health and safety risk are defined for the different tasks and activities, including: office work, transportation–transfer, occupational and environmental security, equipment transfer, loading/unloading, assembly-disassembly, operation maintenance, work in steel network, work in PE network, RMS-A activity, excavation-filling, control-investigate-testing, maintenance-repairment, modification, emergency response, general services (subcontractor services), health unit, installation controlling and gas opening activity, environment controls and waste management, client services, night work, and includes potential seasonal effects on these activities if relevant.
Procedures associated with each task are written and the use of personal protection equipment (PPE) is mandatory. PPE use is controlled, and lack of compliance could result in employment termination. Working orders are issued for each day (who/what/where). These orders are reviewed by the HSE supervisors who clear them before they are issued.
Izgaz Occupational Health Safety Committee (OHS Kurulu) performed an activity-by-activity risk assessment, and developed a matrix which outlines the measures and procedure to reduce these risks. Izgaz EHS Department performs hazard analysis, documents risk assessment results, and ensures workers and public awareness of these risks with the ultimate goal of reducing the number of work accidents to zero.
Izgaz maintains statistics on occupational accidents with and without lost time (LTI). In general it reports approximately 20-25 incidents/accidents a year including small injuries, such as hand cuts. As of the first quarter of 2009, Izgaz had reported 368 days with no accidents causing 2 or more day losses.
Recently, Izgaz started to record near-misses and incidents, by developing a new Hazard Hunter System, where any employee can anonymously report potential accidents or risky situations via Hazard Hunter boxes located in all facilities.
PS 4: Community Health, Safety and Security
The key concern related to community health, safety, and security regarding natural gas distribution activities is the exposure of communities to hazards from gas leaks and/or explosions. Accidents and pipeline ruptures can be caused by in-house staff, Izgaz’s contractors, third-party activities (outside contractors, municipal employees, and/or the general public), and natural events.
Izgaz applies industry accepted international practices with regards to odorization and to operational safety, has a well developed strategy to assure safety to third parties, and an effective and efficient reaction and response in case of emergencies. Izagaz performed a Danger Analysing and Risk Assessment /Explosion Risk highlighting the 20 main risks associated to Izgaz distribution, including among others human error / actions on RMS stations and/or pipelines rupture during construction activities, and earthquakes.
Izgaz’s distribution system is relatively new (1996) and therefore no older pipelines exist. Most pipelines are polyethylene and are therefore not subject to corrosion; for steel pipes cathode protection is applied against corrosion. The pipeline network is monitored with a SCADA system, which continuously measures online flow, operating pressure, and monitors network systems integrity and well functioning.
The SCADA system detects leaks in early stages and has the capability to react remotely and close valves in cases of emergencies or operational problems. This system has been used for over 5 years, and currently connects 4 of the 10 RSM-A stations, 65% of the industrial consumers, and 70% of the district regulation units. Additionally, 43% of the valves (including two valves with an earthquake sensor) and 30% of the cathode protections are also connected to the SCADA. Izgaz goal is to have the whole network connected to the SCADA.
Izgaz carries out leakage detection inspections at least twice a year in order to ensure service reliability and safety, and if any leakage is detected the necessary corrective and preventive measures are undertaken. Additional corrosion is measured by voltage at corrosion measuring points.
Izgaz reported that out of 15,000 excavations that took place in 2008, only in 150 cases (<1%) there was damage to their pipeline network, and none of these events lead to an explosion or major accident. One fatal accident occurred in December 2008 causing 3 deaths. This accident was not Izgaz’s responsibility, but was caused by a contractor who damaged a pipeline in a residential area and did not follow procedure when the rupture took place, but instead he covered the broken pipeline and left.
Additionally, Izgaz is constantly engaged in coordination activities with municipal authorities, other utilities, contractor, and the construction community at large, to assure everyone is well aware of the presence of a gas pipeline distribution network. First of all there is physical evidence and surface signaling above all of Izgaz’s network as well as buried warning bands with the emergency phone number in top of all pipelines. Furthermore: (a) the Company has an Infrastructure Management Centre, where subcontractors get information about location of pipelines, electrical cables and other utilities, before starting any digging or excavation works, (b) Izgaz’s personnel constantly perform supervision site controls to areas where subcontractors are working, and (c) Izgaz is a member of AYKOME (Infrastructure Coordination Department), which is a multi-sectorial coordination and planning group where metropolitan municipalities, district municipalities, and official directorates periodically present their infrastructure investments plans and progress. AYKOME joins and merge these plans and updates a master infrastructure investment plan and program for the whole region. Izgaz, as all other utility companies, coordinates and obtains from AYKOME any new construction permits.
Izgaz has a state-of-the-art Geographic Infromation System (GIS) which shows in digital maps the location of all its pipeline network, as well as clients connected, potential clients, and clients to be connected. The GIS also is used in case of leak or emergencies, as it shows the nearest route to emergency locations.
For safety reason and public awareness residential gas is odorised with Tetrahydrothiophen (THT, C4H8S). Odorizing is done according to TSE ISO/TS 16922. The concentration of THT is measured every 6 hours and the results are recorded through the SCADA system. In 2006 there was a campaign in schools and to the public aiming at informing the population about precautions in case gas was smelled.
Emergency Preparedness and Response: Izgaz has an emergency preparedness and response plan, TA.75.36 - Emergency Team Working Instruction, which guides their actions and chain of command in case of emergencies. An Emergency Action Plan and a Civil Defence Plan are prepared by Izgaz for any emergency action, and emergency drills are constantly performed and documented.
In case of emergencies, Izgaz is mandated by law to have a response time of no more than 15 minutes. As stated above, Izgaz has an Emergency Centre with two professionals 24/7, with an emergency phone line (Tel.-No. 187) where emergency response and the time it takes field crews to arrive to site are recorded. Only in very few cases they do not make the 15-minute mandate response time, and it never takes them more than 20-25 minutes to arrive at the place of emergency. In the year 2008, a total of 8,806 emergency calls (ECS) were registered (gas smell 46%, fire 3%, damage 5%, meter problem 1%, gas absence 37%, other 8%). For comparison: 2004 – 4.122 ECS, 2005 – 9.267 ECS, 2006 – 9.564 ECS and 2007 – 9.024 ECS were registered. The number of emergency calls has reached a plateau because people are more aware and familiar with the use of natural gas.
Earthquakes: Izgaz operates in a seismic area of Turkey. In August 17, 1999 there was a major earthquake (7.4) in Imitz Bay, and even though there was great devastation and many residential areas were completely destroyed, and the earthquake was accompanied by severe ground shaking and extensive surface ruptures, Izgaz’s pipeline network was not severely damaged. The main loss to the Company was due to the loss of @8,000 customers, the damage to 860 gas meters, and the loss of revenue due to a reduced natural gas demand. Izgaz network performed well, but buildings that the gas fed into were destroyed or heavily damaged. There were no fires associated with gas leaks. Locally, the electric system was not re-energized until the potential for electrically ignited gas fires was mitigated.
It must be pointed out that at the time of this earthquake Izgaz pipeline network did not cross the surface fault rupture segments of the North Anatolian, and Izgaz only had 26,000 customers and 380 km of newly built (1995/96) steel and polyethylene pipes. Today, the main pipeline does cross the North Anatolian fault line. Izgaz has built block valves on both sides of the fault line that automatically close in case of shortfall of defined pressure differences, and has committed prior to Financial Closure to present a Pipeline Network Earthquake Risk and Safety Plan.
